Business confidence rose in 2nd quarter: BSP

June 25, 2019

Business outlook improved for the second consecutive quarter in the second quarter, with overall confidence index (Cl) rising to 40.5 percent from 35.2 percent in the first quarter.

''This means that the number of  optimists increased and continued to be greater than the number of pessimists during the quarter,'' said the BSP on Tuesday.

Respondents said reasons for their outlook were: usual uptick in  demand during summer (in view of the foreseen increase in the number of local and foreign tourists), enrollment, and harvest periods, election-related spending in the run-up to the elections in May 2019,  sustained increase in orders and projects leading to higher volume of production, expansion of businesses and new product lines, and continued roll-out of government infrastructure and development projects with the approval of the 2019 national budget.

Businessmen were optimistic their operations would benefit from the favorable macroeconomic conditions, particularly the easing  of inflation.

For the third quarter,  business outlook was less positive as the Cl declined to 47.6 percent from 52 percent in the previous quarter.

This was due to expectations of  interruption of business activities during the rainy season and stiffer competition, the BSP said. DMS