Bangko Sentral ng Pilipinas Deputy Governor Diwa C. Guinigundo. INQUIRER FILE PHOTO
Businesses’ confidence in the Philippine economy fell to its lowest since 2011 due to concerns over port congestion in Manila, higher commodity prices and political noise, according to the Bangko Sentral ng Pilipinas (BSP).
Results of the BSP’s business expectations survey (BES) for the third quarter showed companies remained optimistic, although there were more pessimists in the current three-month period.
Officials said the survey results could point to slower growth in the current quarter, given the strong correlation between the BES and the country’s economic performance.
“There are many factors that may not be captured,” BSP Deputy Governor Diwa C. Guinigundo said on Friday in a press conference.
Businesses’ outlook on the economy settled at 34.4 points in the third quarter, lower than the second quarter’s 50.7 percent. This indicates that the number of optimists declined, but continued to be greater than the number of pessimists during the quarter.
The confidence index is computed as the percentage of firms that answered in the affirmative less the percentage of firms that answered in the negative with respect to their views on a given indicator, the BSP said.
Reasons for the less favorable outlook of companies include seasonal slack in demand due to the interrup tion in business activities during the rainy season and lower consumer spending in view of rising household expenses.
Businesses also cited higher commodity prices, the slowdown in business activities as a result of the truck ban and port congestion issues, and political noise brought on by the Priority Development Assistance Fund and Disbursement Acceleration Program.