PH firm’s Q3 outlook bearish — BSP survey
The third-quarter outlook of most companies in the Philippines turned less optimistic due to uncertainties over the transition to the new administration.
According to the Bangko Sentral ng Pilipinas’ (BSP) latest quarterly survey results, the overall business confidence index (CI) for Q3 dropped to 46.4% compared to the 59.7% outlook in the previous survey.
The BSP attributed this decline mainly to “uncertainties during the leadership transition; continuing public health risks posed by COVID-19; concerns over rising inflation and its impact on business operations; and a seasonal downturn in production due to weather disturbances.”
BSP added that other respondents stated the “higher production costs of automotive components, the adverse effects of the Russia-Ukraine conflict and lockdowns in China due to COVID-19.”
On the other hand, confidence among consumers turned more upbeat for the next quarter — up 11.2% from Q2’s 6.4% — due to expectations of more available jobs, good governance, positive developments in the COVID-19 situation, and additional and high income.
