More companies across all industrial sectors plan to pursue expansion in the next quarter compared to a quarter ago, as they remain optimistic on the growth trajectory of the economy.
Results of the latest Business Expectations Survey of Bangko Sentral ng Pilipinas showed that the percentage of industrial firms with expansion plans increased to 34.9 percent from 31.7 percent in the previous quarter.
Among sub-sectors, agriculture, fishery and forestry recorded the strongest expansion plans, followed by manufacturing, electricity, gas and water and mining and quarrying.
“This suggests that more firms will continue to hire new employees than those that indicated otherwise. Firms across all sectors were bullish in their hiring intentions,” Bangko Sentral said.
The percentage of total respondents in the mining and quarrying sector that indicated their intention to expand in the next quarter increased to 21.6 percent from 13.7 percent a quarter ago; manufacturing, 35.5 percent from 31.5 percent; agriculture, fishery and forestry, 38 percent from 37.1 percent; while electricity, gas and water declined to 30.9 percent from 40.1 percent.
The major business constraints identified by respondents in the first quarter were domestic competition”•cited by 53 percent of total respondents”•and insufficient demand leading to low sales volume, cited by 24 percent of total respondents.