Business confidence index hits new high

Business sentiment has hit a new high, the central bank yesterday reported, with the outlook
for the fourth quarter at its highest since 2001.

The overall confidence index (CI) was at 50.6% for the period, the Bangko Sentral ng
Pilipinas (BSP) said in a statement, up from the 45% recorded for the third quarter and the
22% posted a year earlier.

It said sentiment had been boosted by 3 factors:
• expectations of sustained economic improvements on the back of strong demand
that is being fueled by migrant workers’ remittances and capital inflows;
• the seasonal factor of stronger business sentiment during the Christmas and
harvest seasons; and
• continued confidence in the new government.

“The positive business sentiment likewise mirrored the improving business confidence in
countries such as Canada, Hong Kong, India, Germany, Italy and New Zealand,” the BSP
said.

The outlook for the following quarter, however, dipped. The next quarter CI — for the first
quarter of 2011 — was at 51% from the 59.2% recorded three months earlier.

The BSP survey was conducted from Oct. 1 to Nov. 9. A total of 1,624 firms nationwide were
polled, of which 75.4% responded. (PIA)

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