Business expansion, hiring plans decline in Q2 — BSP survey
MANILA, PHILIPPINES — Companies in the industry sector postponed plans to expand their operations and hire workers in the year’s second quarter due to insufficient demand and high interest rates.
Results of the central bank’s First Quarter 2023 Business Expectations Survey showed the percentage of businesses with expansion plans declined marginally to 19.1 per cent. This is lower than the 19.1 per cent recorded in the fourth quarter last year.
Redentor Paolo Alegre Jr., officer-in-charge of the Monetary Policy Sub-Sector at the Bangko Sentral ng Pilipinas (BSP), said the decline was noted in the manufacturing, electricity, gas and water and agriculture, fishery and forestry sub-sectors.
Companies identified stiff domestic competition, insufficient demand, and high interest rates as the major business risks in the first quarter.
From April to June last year, the employment outlook index declined sharply to 13.4 per cent from 21.2 percent in the Q4 2022 survey results.
“The lower reading in Q1 2023 suggests that hiring intentions may turn less favorable for the next quarter,” Alegre explained.
However, hiring prospects for the next 12 months are expected to improve as the employment outlook index increased to 36.4 per cent from 29 per cent in the previous quarter’s survey.
The BSP survey was conducted from January 13 to March 6, covering 1,554 companies.
