The business confidence index rose across the Philippines in the third quarter to 32.9, up from only 32.1 just a quarter earlier, the Bangko Sentral ng Pilipinas reported on Friday.
According to the BSP, the improvement was pushed by expectations of increased demand for services and goods as well as by easing inflation.
Also, the various businesses look forward to a seasonal boost in business activities due to the resumption of the school year as retailers stock up for the long Christmas holidays up ahead.
“The country’s business confidence turned bullish as the overall CI improved to 56.8 percent from 43.7 percent in the Q2 2024 survey results. For the next 12 months, business outlook was similarly more upbeat as the overall CI increased to 58 percent from 56.5 percent in the Q2 2024 survey results,” the BSP said.
The sectors adopting a more optimistic view of what lies ahead include the services sector and construction. The sectors holding a less bullish attitude include the various manufacturers and retailers.
But overall, the business outlook in the quarter ahead improved from 56.8 from 43.7 and in the coming year to 58 from 56.5, the BSP reported.
The monetary authorities also reported an improvement in consumer sentiment for the period, which rose to minus 15.6 in the third quarter from minus 20.5 in the preceding quarter. While this index has always been in the negative, the BSP said the less pessimistic sentiment was traced to expectations of higher income from wages and salaries, remittances, permanent employment and more family members entering the labor force.
“The consumer sentiment for Q3 2024 improved as the overall confidence index (CI) turned less negative at -15.6 percent from -20.5 percent in the Q2 2024 survey results. This is reflective of the decrease in the percentage of pessimists, which outweighed the slight decrease in the percentage of optimists. According to the respondents, their less pessimistic sentiment for Q3 2024 was attributed to expectations of: (a) higher income from wages/salaries, remittances, and other sources, (b) additional sources of income, (c) permanent employment and more available jobs, and (d) additional working family members,” the BSP said.
Still, the BSP said the consumer outlook has turned optimistic in the upcoming quarter but has measured less optimistic over the next twelve months.
