BUSINESSMEN became more optimistic in the fourth quarter of this year compared a quarter ago due mainly to the country’s bright economic prospects, results of a survey conducted by Bangko Sentral ng Pilipinas show.
The Fourth Quarter Business Expectations Survey showed the business confidence index climbed to 51.3 percent from 41.4 percent a quarter ago.
The index was the highest in two years or since 52.3 percent in the fourth quarter of 2013, indicating that more businesses were optimistic of the country’s economic prospects for the last quarter of the year.
Most of the surveyed companies cited an expected increase in consumer demand, higher palay harvest, sustained sales, expansion of businesses and product lines, steady flow of remittances from migrant Filipino workers and election-related spending as some of the reasons for the optimistic outlook.
Their more positive outlook was further driven by expectations of brisker business due to the country’s hosting of the recently-concluded Asia-Pacific Economic Cooperation Summit, higher disbursements for the government’s infrastructure and other development projects.
The sentiment of businesses in the Philippines mirrored the buoyant business outlook in Australia, Japan and the Euro area, but was in contrast to weaker sentiment of businesses in the United Kingdom, the United States, China, Hong Kong, Germany, Russia, Indonesia, Singapore and India.
“It is quite clear that businesses are brisker during the holiday season… Also, we have seen that candidates are willing to spend for the coming elections,” Bangko Sentral Deputy Governor Diwa Guinigundo said in a press briefing.
The business confidence index for the first quarter of 2016, however, declined to 43.9 percent from 53.1 percent in the fourth quarter of 2015.
The central bank attributed the lower index to the typical slowdown in demand after the holiday season, stiffer competition, lingering concerns on the El Niño dry spell and uncertainties in global economies.
The Bangko Sentral conducted the survey from Oct. 1 to Nov. 16 covering 1,514 companies nationwide.