Philippine businessesmen feel more confident about their income prospects this quarter than they did at the same period last year, according to the latest Business Expectation Survey (BES) of the Bangko Sentral ng Pilipinas (BSP).
The BES report shows the business confidence index improved to +41.5 per cent, slightly better than the 40.5 per cent reported in the same period last year.
The expectation that the country will soon get an investment-grade credit rating, the recent growth rate and growth rate projections, and the perception of an improved governance were seen to trigger the upbeat sentiments.
This reflects the growth momentum of the economy, according to Cyd Tuano-Amador of the BSP. “Fundamentally, this is an indication of the view that the good readings we are seeing in the macroeconomic front would be sustained.”
However, compared with the 49.5 per cent recorded in the fourth quarter of 2012, this year’s BES index declined, due to “seasonality factors.”
BSP economic statistics department director Rosabel Guerrero explained that business sentiment is usually lower in the first quarter than the rest of the year as demand for goods and services tend to drop immediately after the Christmas season.
Conducted from January 3 to February 8, the survey sample was made up of 1,555 firms nationwide, with a response rate of 80.2 per cent.
The next-quarter index, which indicates expectation of businesses as to whether their sentiment will improve or worsen in the coming quarter, came in at +56.4 percent—up from the 55.4 percent reported during the same period last year and the +43.8 percent seen in the fourth quarter of 2012