Business will remain strong in the third quarter of the year as volumes of sales and levels of employments are expected to increase, fueled by the high optimism of investors and businessmen on the capacity of the local economy to recover from the financial crunch of 2009. [Read full throttle for RP economy seen in second half here]

According to the Business Optimism Index conducted by Dun & Bradstreet,  a credit reporting agency, Philippine businesses’ positive outlook is supported by the faster-than-expected economic growth in the first three months of the year.

The government has reported that the economy posted a growth of 7.3 percent in January to March, higher than the official growth assumption of 2.6-percent to 3.6-percent  for the year.

The poll’s respondents were random samples from D&B’s database consisting of representatives from eight sectors, including retail, manufacturing and construction, among others.  The study was held in the first half of June, when President Benigno “Noynoy” Aquino III has yet to be proclaimed. [Read Aquino's vow to make the Philippines a business-friendly place here]

The six indices used as measurement for the study were Volume of Sales, Net Profits, Selling Prices, New Orders, Inventories, and Employment.  [Read entrepreneurship as solution to the rising number of jobless Filipinos here]
 
Of the six indices, two have maintained a steady upbeat growth, even surpassing their optimism levels in the previous quarter,  Victor Abola, director of Strategic Business Economics Program at the University of Asia and the Pacific, said.

Page 2: P-Noy's impact

“While the survey was done before (President) Noy (Aquino) took office, it shows the increased confidence of the people, especially the business sector, even before he announced his cabinet members,” Abola said.
 
Meanwhile, the World Bank upgraded its economic forecast for the Philippines to 4.4 percent this year, better than the 3.5-percent projection that it had in February. For 2011, the Washington-based lender expects a four-percent growth for the Philippine gross domestic product, the sum of all goods and services produced within the country. [Read about the World Bank's funding support for RP's Ondoy reconstruction efforts here]

However, the bank said the Aquino government must improve its public finances as a defense to the fresh global economic threat of the European sovereign debt problems.

Early this year, concerns about rising indebtedness in European countries including Greece, Spain, and Portugal has generated fears that the global economy might slide back to recession and cause further difficulties in developing countries like the Philippines.

The report also noted that private consumption in the country continues to expand while consumer confidence continues to improve. The recent peaceful conduct of the elections has likewise contributed to the positive growth of the economy as election spending pumped more liquidity into the system.  [Read about the improving consumer outlook in the Philippines here]