Businesses’ outlook on the economy was more positive in the Fourth Quarter, with the overall confidence index rising to 49.5 percent from 42.5 percent in Q3, the Bangko Sentral ng Pilipinas said.

The current quarter CI was the second highest reading since the nationwide survey started in Q4 2006, the BSP said.

The confidence index is computed as the percentage of firms that answered in the affirmative less the percentage of firms that answered in the negative with respect to their views on a given indicator.

Respondents to the study cited increase in orders and start of  new projects leading to higher volume of production; expected increase in consumer demand during the Christmas and palay harvest seasons; and expansion of businesses and new product lines; as among the reasons for their positive outlook.

Favorable macroeconomic conditions in the country, particularly low inflation and interest rates, higher foreign investment inflows and the steady stream of overseas Filipinos’ remittances; introduction of new and enhanced business strategies; and possible further credit rating upgrade for the Philippines; were also among the reasons cited by entrepreneurs.

The sentiment of businesses in the Philippines mirrored the improved business outlook in China and India, and was in contrast to the unchanged or less buoyant sentiment in neighboring countries such as Singapore, Korea, Hong Kong SAR and New Zealand, the BSP said.*

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