Business sentiment remained upbeat in the fourth quarter as the overall confidence index (CI) rose to 35.9 percent from 35.8 percent in the third quarter.
“This is reflective of the increase in the percentage of optimists, which was barely offset by the increase in the percentage of pessimists,” the Bangko Sentral ng Pilipinas said Friday.
It said the fourth quarter’s CI stayed positive due to the optimistic firms’ expectations of an increase in demand for goods and services during the Christmas season, sustained economic recovery to pre-pandemic levels, business expansions in the utilities, trade, financial and hotels and restaurant sub-sectors, development and launch of new products and services and brisker consumer spending on the back of higher remittances and inbound holiday travelers.
The CI was tempered by concerns of pessimistic firms over the negative economic impact of the ongoing conflicts in Gaza and Ukraine, elevated inflation, and higher interest rates.
Business sentiment across all sectors remained optimistic in the fourth quarter. The positive CIs of the industry, wholesale and retail trade, construction and services sectors reflected continued optimism in the said sectors, the BSP said.
The optimism in the industry and wholesale and retail trade sectors improved but weakened in the construction and services sectors.