Business confidence on uptrend-BSP poll

Source:The Daily Tribune
11/20/2009

 

The business sector seems to have regained its confidence after an extended dip as a result of the global financial turmoil after a periodic Business Expectations Survey of the Bangko Sentral ng Pilipinas (BSP) showed the confidence index at 22 percent in the fourth quarter, significantly higher than the 18.4 percent recorded in the previous quarter and negative 6.8 percent in the final quarter last year.

The survey optimists outnumbered pessimists for the third consecutive time that the survey was held.

The more buoyant business sentiment reflected expectations of better economic performance in the current and next quarters, with clearer indications of improving conditions in the global economy, according to the BSP report.

The survey results also suggested that businesses do not anticipate that typhoons “Ondoy” and “Pepeng” would have a long-lasting and significant impact on the overall positive direction of economic activity, it added.

BSP deputy gov. Diwa Guinigundo said the rising optimism followed the cautious outlook that prevailed last year when the global financial environment deteriorated very quickly.

“The more buoyant business sentiment reflected expectations of better economic performance ion the current and next quarters, with clearer indications of improving conditions in the global economy,” he said in a statement.

BSP assistant gov. Maria Cyd Tuano-Amador said the improvement in businessmen’s outlook complemented similar views in neighboring countries such as Singapore, Malaysia and Hong Kong.

The growing business morale was driven in part by supportive macroeconomic conditions best shown by low domestic inflation and interest rates, the stable peso and sustained overseas Filipino remittances originally seen contracting by experts.

The upcoming Christmas holidays and the national elections, five months later, also boosted business morale.

Also helping lift optimism were new and enhanced business strategies adopted during the survey period Oct. 1 to Nov. 6.

The BSP found that businessmen in the National Capital Region were far more optimistic than those surveyed in areas outside of NCR.

Businessmen projected this sense of optimism well into the first quarter next year whose index stood at 34 percent from 33.7 percent three months earlier.

The optimists tended to be the larger firms listed as among the top 7,00 corporations listed by the Securities and Exchange Commission in 2008 and trade regularly with counterparts abroad, the BSP said.