MANILA — Bangko Sentral ng Pilipinas’ (BSP) Business Expectation Survey (BES) for the second quarter of 2018 revealed that businessmen have remained optimistic about the Philippine economy.
The BSP reported Thursday that overall confidence index in Q2 2018 stood at 39.3 percent, slipping from 39.5 percent in the first quarter of the year.
But the central bank noted that the number of businesses with positive outlook on the economy is higher than those who are pessimists.
“Specifically, respondents with steady outlook noted that sustained demand and ongoing market adjustments as a result of the recently enacted Tax Reform for Acceleration and Inclusion (TRAIN) law were to be expected for the current quarter,” the BSP said.
Among the reasons for business optimism in Q2 2018 were higher demand during summer due to expected arrival of local and foreign tourists as well as the harvest and enrollment period; increase in orders and volume of production; rolling out of infrastructure projects under the “Build, Build, Build” Program of the administration; and positive outlook on TRAIN law, which will support the infrastructure program that will lure investments.
Business establishments were also positive on expansion of businesses and new product lines as well as the sound macroeconomic fundamentals of the country.
On the other hand, the slight decline in the overall confidence index was due to expectations of higher prices of consumer goods due to oil price hikes and a weaker peso.
The BSP cited that trading firms have become more bullish over better prices of export commodities in the global market, increasing orders from abroad, and higher output.
The BES revealed that importers and domestic-oriented firms were more upbeat because of the robust consumer demand expected during the summer season, as well as the anticipated higher disposable incomes for Filipinos as an effect of the lower personal income tax rate under the TRAIN law. (PNA)
