Survey: Local investors bullish

Businesses in the Davao Region remained bullish on the economy with the establishment of infrastructure projects and expected rise in tourist arrivals during the upcoming Kadayawan Festival, the recent survey of Bangko Sentral ng Pilipinas (BSP) bared.

In the Business Expectations Survey (BES) of BSP conducted on April 2-May 22, the results bared that enterprises in the region continued to have positive outlook along with the businesses based in Region IX. The sentiment of the firms was similar for the second quarter.

“(The firms’) outlook improved due to expected commencement of new projects (mostly construction), improved weather forecast and influx of tourists during Kadayawan Festival in August (in Region XI),” the results of the central bank’s BES showed.

The BSP surveyed 104 firms that are in the Securities and Exchange Commission’s Top 7,000 Corporations in 2010 and Business World’s Top 1,000 Corporations in 2015
The sentiment of the firms in Davao Region was different during the first quarter, based on the results of the survey.

BSP’s survey cited that the establishments in the region were less buoyant last first quarter “on account of the expected slack in demand after Christmas.” There were also those who raised concerns on the implementation of TRAIN, which started in January.

The BES bared that the outlook of the firms in other regions in the country, however, was less buoyant on the economy in the third quarter as they expected to have interruption of business activities during rainy season, lower consumer demand and high commodity prices.

Throughout the country, the BSP surveyed 1,466 companies. Overall, the businesses had positive outlook for the second quarter with expected increase in demand and establishment of infrastructure projects under the “Build, Build, Build” program of the national government.

The results of the BES bared that there was only a “slight dent on optimism caused by expectations of higher consumer prices due to oil price hikes and peso depreciation.”

Except Regions IX and XI, the sentiment of the businesses for the third quarter was less positive with the expected interruption of business activities in rainy season, low consumer demand and high commodity prices. (KMF)

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