Businesses were more optimistic during the second quarter partly on positive prospects brought about by the country’s hosting of the Asean Summit in April, the Bangko Sentral ng Pilipinas said yesterday.
The results of the BSP’s business expectations survey for the second quarter showed that overall confidence index (CI) rose to 43 percent for April to June from the 39.4 percent registered in the first quarter.
The CI is the difference between the percentage of optimistic firms and that of pessimistic companies.
Rosabel B. Guerrero, director at the BSP’s department of economic statistics, said the higher second-quarter CI meant “more businesses are optimistic about the country’s economic prospects.”
“Respondents cited the following factors for their more optimistic outlook: Anticipated increase in demand during summer (due to the expected arrival of local and foreign tourists), enrollment and harvest periods, increase in orders and production volume, expansion of businesses and new product lines, introduction of new and enhanced business strategies and processes, and inflows of investments with the continuing trust in government leadership,” Guerrero said.
“Their more positive outlook was also driven by expectations of higher disbursements by the government on infrastructure and other development projects, and brisker business due to the Philippines’ hosting of the 30th Asean Leaders’ Summit,” Guerrero added.
“The sentiment of businesses in the Philippines mirrored the improved business confidence in Hong Kong, South Korea, Canada, France, Germany and Netherlands, but was in contrast to the weaker outlook of those in the United States, United Kingdom, Thailand and New Zealand,” according to Guerrero.
BSP data showed, however, that the second-quarter CI was lower than the 48.7 percent posted during the same three-month period last year.
Also, Guerrero said the business outlook for the third quarter was less optimistic.
“The next quarter Cl at 42.7 percent was lower than the 47.2 percent in the previous survey. According to respondents, seasonal factors were behind their less upbeat outlook, given the expected interruption of business activities during the rainy season, and lower consumer demand as households prioritize enrollment expenses over other expenditures,” Guerrero explained.