Businesses more upbeat over economic prospects – BSP survey

Business confidence in the economy is on the upswing, the Bangko Sentral ng Pilipinas said on Thursday, citing results of its latest Business Expectations Survey, which showed small and medium scale enterprises being more upbeat about the months ahead than larger companies are.
 
The overall confidence index improved to 38.7 percent in the fourth quarter from 34.1 percent in the third. These levels, however, are still some distance from the record 50.6 percent for October-December last year.
 
“By employment size, small and medium-sized firms were more favorable in their outlook in Q4 2011 while the outlook of large-sized firms was broadly steady,” the BSP said in its statement.
 
“Going forward, the outlook of firms for Q1 2012 for across all employment sizes turned less upbeat, with large sized firms being the least optimistic,” the BSP added.
 
Respondents cited six reasons for their optimism: (1) seasonal increase in consumer demand during the Christmas and harvest seasons; (2) implementation of government projects; (3) sound macroeconomic fundamentals; (4) business expansion from steady investment inflows; (5) introduction of new and enhanced business strategies; and (6) steady stream overseas Filipinos’ remittances.
 
The BSP said exporters were “less upbeat” because of the weak global economy and employers indicated a “slowdown in hiring” early next year.
 
Some 1,617 firms from the Securities and Exchange Commission’s Top 7,000 Corporations responded to the BSP survey from October 3 to November 11.
 
More respondent firms expected the peso to appreciate from this year’s fourth quarter to the first three months of 2012. — ELR/VS, GMA News