MANILA -– The overall business confidence index for this quarter reached 45.4 percent, the highest Q3 reading of all time, based on the Business Expectations Survey (BES) conducted by the Bangko Sentral ng Pilipinas from July 1 to August 12.
The BES is a quarterly survey of firms drawn at random from the combined lists of the Securities and Exchange Commission's Top 7,000 Corporations in 2010 and Business World's Top 1,000 Corporations in 2014.
Results give an advance indication of selected economic indicators and the direction of change in the economy's overall business activity.
Computed as the percentage of firms that answered in the affirmative, less the percentage that answered in the negative, the confidence index indicates the view of respondents on a given indicator.
Despite the record high, business outlook on the economy was slightly less optimistic in the current quarter compared to the 48.7 percent registered in the Q2 survey.
This indicates that the number of optimists declined but continued to be greater than the number of pessimists during the quarter. Respondents attributed their less buoyant outlook mostly to seasonal factors.
For the quarter ahead, business confidence rose to 56.8 percent, suggesting that growth could accelerate in the last three months of 2016. The more positive outlook for Q4 was driven by confidence in the new administration and an expected acceleration in the rollout of infrastructure projects, among others.*PNA
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