Business confidence rises, but consumers stay pessimistic

BUSINESS confidence in the Philippines improved in the second quarter from the previous quarter on the economy’s sustained return to greater normalcy and easing inflation.

Results of the latest Business Expectation Survey of the Bangko Sentral ng Pilipinas showed that the overall confidence index climbed to 40.8 percent in the second quarter from 34 percent in the first quarter.

“The respondent firms’ optimism stemmed from their expectations of increase in sales and production due to stronger demand for goods and services across all sectors, continued postpandemic recovery, fully reopened economy, easing inflation and seasonal uptick in demand for certain goods and services during the hot dry season,” the BSP said.

Inflation has been on a downward trend since it peaked at 8.7 percent in January 2023. It eased to 8.6 percent in February, 7.6 percent in March, 6.6 percent in April and 6.1 percent in May. This brought the average in the first five months to 7.5 percent, above the target range of 2 percent to 4 percent.

“Business sentiment across all sectors is mainly more optimistic for Q2 2023. The confidence indexes of the industry, services, and wholesale and retail trade sectors for Q2 2023 increased, while the index of the construction sector declined,” the BSP said. Meanwhile, consumer sentiment for the second quarter remained pessimistic as the overall confidence index was steady at -10.5 percent, compared to -10.4 percent in the first quarter. This means that pessimists continued to outnumber optimists, but the margin was almost unchanged from the previous quarter.

“The sustained negative sentiment for Q2 2023 was attributed by consumers to their concerns over faster increase in the prices of goods and higher household expenses, lower income, fewer available jobs and the effectiveness of government policies and programs on inflation management, economic resilience, high-quality and well-paid job creation and financial assistance to low-income households,” the BSP said.

Consumers were less confident for the next quarter and the next 12 months as the confidence index declined to 4.6 percent and 20.5 percent (from 7.5 percent and 22.7 percent), respectively.

Julito G. Rada

Pse Index Closing

The company said it would use the proceeds from the maiden share offering to fund the equity portion of its hydropower projects, the development and/or acquisition of renewable energy projects and operating and working capital requirements.

REDC is the hydropower arm of Pure Energy Holdings led by businessman Dexter Tiu. The company operates six hydropower plants with a combined capacity of 10.146 megawatts.

It will soon add to its seventh and eighth operating hydropower plants in its portfolio with the commissioning of the 5.8-MW Tibag hydropower plant and the 1.4-MW Lower Labayat hydropower plant.

The company is also constructing the 15-MW Pulanai mini hydropower project in Bukidnon province and the 4.5-MW Piapi MHP project in Quezon province. The projects are targeted to be operational by 2025.

REDC earlier said it is developing a 200-MW wind farm in Quezon province. The project covers two wind energy service contracts in line with REDC’s mission to provide clean energy and uplift the living standards of rural and underelectrified communities.

By Othel V. Campos

THE Department of Trade and Industry expects a better export performance over the next six years following the signing of Memorandum Circular 23 by Executive Secretary Lucas Bersamin approving the 2023 to 2028 Philippine Export Development Plan.

“We are one with our exporters in raising the alarm bells on the need to have a whole-of-nation approach to dramatically change the growth trajectory of Philippine exports and develop the Philippines as an agile export powerhouse. As we move forward, it’s essential to use the momentum to reach the goals and ensure that the Plan is carried out well,” Trade Secretary Alfredo Pascual said in a statement.

MIGRANT WORKERS’ DAY. BDO Unibank Inc. and SM Supermalls in partnership with the Department of Migrant Workers and the Overseas Workers Welfare Administration team up to honor overseas Filipinos during the Migrant Workers’ Day celebration at the DMW office in Mandaluyong City, SM City North Edsa in Quezon City and SM City Bacolod in Bacolod City. Aside from games and prizes, BDO shared financial tips to overseas Filipinos and responded to their inquiries on remittance services, loans and insurance products.