Business Confidence Less Optimistic for Q2 and Q3 2021
Business confidence weakened for Q2 and Q3 2021, as the overall confidence index (CI) for both quarters decreased from previous quarter’s survey results.
In particular, the CI for Q2 2021 dropped to 1.4 percent from 17.4 percent in Q1 2021 while that for Q3 2021, declined to 31.4 percent from the previous quarter’s survey result of 42.8 percent.
The respondents’ less optimistic outlook for the two quarters of 2021 was attributed primarily to the following: (a) upsurge of COVID-19 cases, (b) re-imposition of stricter community quarantine, particularly in NCR Plus, and (c) elevated inflation rate due to supply constraints.
Respondents also cited concerns over the pace of the vaccination roll-out for the current
quarter as well as the expected seasonal factors for Q3 2021 such as the close of the milling season and the usual slack in demand for power and construction materials during the rainy season as reasons for their less buoyant sentiment for Q2 and Q3 2021, respectively.
The sentiment of businesses in the Philippines mirrored the less optimistic business outlook in Bulgaria, Canada, Chile, China, and the United States of America. Meanwhile, business confidence in Croatia, Greece, New Zealand, and the United Kingdom turned optimistic but that of Australia, Brazil, Denmark, euro area, France, Germany, Israel, and Netherlands was more buoyant.