Elevated inflation and interest rates, costlier raw materials and production costs, falling sales and demand for goods and services due weather-related disruptions and other seasonal factors pushed the business confidence index lower in the third quarter to 35.8 percent from 40.8 percent a quarter earlier.
Latest readings by the Bangko Sentral ng Pilipinas (BSP) show business sentiment across the various business sectors proved less buoyant during the period.
Their collective outlook has also proven less upbeat during the period and capacity utilization in the industry and construction sectors edged lower to 70.5 percent from 71 percent.
But the various businesses anticipated less tight financial conditions and access to credit during the period.
Consumer confidence which has always been dominated by pessimists than by optimists showed improvement during the period as its index rose to minus 9.6 percent in the third quarter from minus 10.5 percent in the second quarter.
The comparatively fewer pessimists among consumers during the period was traced to more available jobs, permanent employment, more working family members and greater income from wages, salaries and the remittances of relatives.
The BSP regularly surveys consumer sentiment in recognition of its importance as a key economic driver. Consumption activities in the Philippines account for about a third of local output measured as the gross domestic product (GDP).
