BSP: Business sector less optimistic, consumers more pessimistic in Q3 2022

The business sector turned less optimistic, while the consumers became more pessimistic about the Philippine economy in the third quarter of 2022, according to the results of the latest survey released by the Bangko Sentral ng Pilipinas (BSP).

At the press briefing on Friday, BSP Department of Economic Statistics head Redentor Paolo Alegre Jr. said the confidence index (CI) of the Business Expectations Survey (BES) showed that it decreased to 26.1% from 35.4% in the second quarter.

The Consumer Expectations Survey (CES), on the other hand, showed that it also went down to -12.9% from -5.2% in the second quarter.

“The result of the BES suggests that optimism declines among firms, while the CES result suggests that the pessimism of the consumers increased,” Alegre said.

Alegre said business firms’ less optimistic sentiment in the third quarter of 2022 due to higher inflation, rising fuel prices, decline in sales and demand, peso depreciation, and continuing public health threat of COVID-19.

He said the business sentiment is less optimistic for the fourth quarter of 2022 and in the next 12 months.

“Businesses expect the peso may continue to depreciate against the US dollar, and the peso borrowing and inflation rates may rise in Q3 and Q4 2022, and in the next 12 months,” he said.

Alegre, however, said firms are looking forward to hiring more people in the fourth quarter of 2022 and in the next 12 months.

Consumers

Alegre said consumers were more pessimistic due to faster increase in the prices of goods and higher household expenses, low income, and fewer available jobs and working family members.

He, however, said consumers are more optimistic in the fourth quarter of 2022 and in the next 12 months.

“Consumers expect the peso may depreciate against US dollar and the peso borrowing rates may increase but the unemployment rate may decline in the third quarter and the fourth quarter, and in the next 12 months,” Alegre said.

“Meanwhile, they expect that the inflation rate may rise in the current quarter and fourth quarter  but may ease in the next 12 months,” he added.

The BES was conducted from July 6 to August 15 with 1,504 firms surveyed nationwide. Of these number, 584 companies are located in the National Capital Region while 920 companies from areas outside of NCR.

Meanwhile, the CES was conducted from July 1 to 13, and surveyed a total of 5,546 households. Of these households, 2,806 were from NCR, while 2,740 in areas outside of NCR. —NB, GMA News