More firms less upbeat about Q3 – BSP survey
Credit to Author: JORDEENE B. LAGARE| Date: Thu, 19 Sep 2019 17:20:12 +0000
MORE companies acquired a more negative outlook on the country’s economy, while more consumers hold a more positive one for the third quarter, the Bangko Sentral ng Pilipinas reported on Thursday.
Results of the central bank’s latest Business Expectations Survey showed that its overall confidence index (CI) — computed as the percentage of companies that answered in the affirmative minus those who replied otherwise — fell to a still-positive 37.3 percent from 40.5 percent previously.
“The lower but positive CI means that the number of optimists declined, but continued to be greater than the number of pessimists for the third quarter,” the BSP explained.
Respondents attributed their weaker sentiment to a demand slump and slowdown of business activities during the rainy season; decline in orders, leading to lower sales; lack of supply of raw materials; perceived unfavorable effects of various government policies (i.e., the Rice Tariffication Law, the ban on provincial buses on EDSA); and stiffer competition.
“The sentiment of businesses in the Philippines mirrored the less buoyant business outlook in Bulgaria, Croatia, Germany, India and Norway,” the Bangko Sentral said.
“However, business sentiment in Australia, Brazil, Canada, Chile, France, Greece, Hungary, Israel and Ukraine were more optimistic,” it added.
The latest BES was conducted from July 10 to September 10 and involved 1,487 firms nationwide.
Meanwhile, results of the BSP’s Consumer Expectations Survey showed that its overall CI — which measures sentiment about the country’s economic condition, family financial situation and family income — reached 4.6 percent, soaring from -1.3 percent previously. This indicates that optimistic consumers outnumbered pessimistic ones.
Respondents credited their positive outlook on improvements in peace and order, the availability of more jobs, increased income and good governance.
This poll was conducted from July 1 to 13 and covered 5,676 households across the country.