The Bangko Sentral ng Pilipinas (BSP) said Friday both business and consumer sentiment improved in the fourth quarter of 2024.
Results of the latest Business Expectation Survey showed that the business sentiment in the Philippines was more optimistic in the fourth quarter 2024 as the overall confidence index (CI) climbed to 44.5 percent from 32.9 percent in the third quarter of 2024.
“This reflected the combined increase in the percentage of optimists and the decrease in the percentage of pessimists. The firms’ more bullish business confidence in the fourth quarter of 2024 was driven by their anticipation of an increase in demand for certain goods and services and the related seasonal uptick in business activities,” the BSP said.
“In particular, this could lead to increased demand in agricultural products, infrastructure projects, shipping and distribution services, transportation units, enrollment, chemicals, graphics services, among others. Moreover, the expected easing inflation and lower interest rates as well as the expansion and improvement of business operations buoyed business sentiment,” it said.
It said that for the first quarter of 2025, business confidence was less upbeat as the overall CI dropped to 40.3 percent from 56.8 percent in the third quarter of 2024 survey results. For the next 12 months, business outlook was similarly less buoyant as the overall CI declined to 56.4 percent from 58.0 percent in the Q3 2024 survey results.
Meanwhile, consumer sentiment for the fourth quarter of 2024 improved as the overall confidence index (CI) turned less negative at -11.1 percent from -15.6 percent in Q3 2024.
“This reflected a combined increase in the percentage of optimists and a decrease in the percentage of pessimists. Respondents attributed their less pessimistic sentiment for the fourth quarter of 2024 to expectations of higher and additional sources of income, (b) more working family members, and (c) more available jobs and permanent employment,” the BSP said.
For the first quarter of 2025 and the next 12 months (November 2024 to October 2025), consumer confidence also improved. The more upbeat outlook of consumers for both periods was attributed to expectations of higher income, additional sources of income and more available jobs.
Households also expect that the unemployment rate may increase across all reference periods. Households expect that the inflation rate may increase in the near term and over the next 12 months.
