Businesses less upbeat, consumers more bullish

Businesses in the Philippines turned less optimistic for the first quarter next year and the next 12 months amid economic uncertainties leading up to the midterm elections, according to the Bangko Sentral ng Pilipinas BSP).

- KEISHA TA-ASAN

On the other hand, consumers turned more upbeat for the first quarter of 2025 and the next 12 months on expectations of higher income and more available jobs.

Based on the fourth quarter 2024 Business Expectations Survey (BES) of the BSP, the overall confidence index declined to 40.3 percent compared to a quarter-ago level of 56.8 percent.

The central bank attributed the respondents' less optimistic outlook for the quarter to the post-holiday decline in demand for products and services and business activities as well as stiff foreign and domestic competition.

Firms were also less optimistic amid increased economic uncertainty leading up to the midterm elections, the peso's depreciation against the dollar and higher costs of production.