Businesses less optimistic about Q3 prospects
Businessmen turned less optimistic in their prospects of business activity in the third quarter, as firms grapple with the impact of a slumping peso and the declaration of martial law in Mindanao, the central bank survey showed.
The Third Quarter Business Expectations Survey showed the business confidence index fell to 37.9 percent in the third quarter from 43 percent the previous quarter.
The aeasonal factors such as slowdown of business activities during the rainy season, slack in demand during the planting and closed milling season, as well as the closed fishing season in Davao Gulf, Marawi crisis and declaration of martial law in Mindanao, weakening peso, increasing prices, stiffer competition and damages and power outages were the concerns raised by businessmen during the period.
“The sentiment of business in the Philippines mirrored the less buoyant business outlook in the US, Canada, Netherlands, New Zealand, and Thailand but was in contrast to more more bullish views of those in Germany and Hong Kong and steady outlook in France,” the BSP statement said.
The BSP conducted the survey from July 3 to Aug.l 18, covering 1,480 companies nationwide.