MANILA – The business outlook on the economy improved in the second quarter, a survey released Tuesday showed, as respondents acknowledged cooling inflation, election-related spending, and the government’s continued infrastructure program.
The overall confidence index rose to 40.5 percent in the second quarter from 35.2, improving for two straight quarters, according to the Bangko Sentral ng Pilipinas’ (BSP) Business Expectations Survey.
"They were also optimistic that their business operations would benefit from the favorable macroeconomic conditions in the country, particularly the easing of inflation in 2019," the BSP said.
Business confidence for the third quarter, however, “was broadly less favorable” as firms anticipate a slack during the rainy season, the BSP said.
Consumer confidence also “slightly weakened” in the second quarter to -1.3 percent from 0.5 percent in the first quarter, according to BSP's Consumer Expectation survey.
Respondents attributed their expectations to higher prices of goods, health expenses and the water crisis, the BSP said.
“For the current quarter, consumer confidence was steady for low- and middle-income groups while the high-income group was less optimistic as they anticipated increase in the prices of commodities and household expenses,” the BSP said. -- with a report from Bruce Rodriguez, ABS-CBN News