Consistent with the overall optimistic outlook, business sentiment across sectors remained positive in the third quarter of the year, while better days are expected once the fourth quarter of the year rolls in.
The more favorable outlook of the services sector was largely driven by brighter prospects in the financial intermediation, community and social services, and hotels and restaurants sub-sectors, the Bangko Sentral ng Pilipinas said. Firms from this sector attributed their more confident outlook to the sound macroeconomic fundamentals, good governance as well as the expected business expansion arising from the surge of foreign investment inflows.
The wholesale and retail trade sector registered the biggest improvement in sentiment quarter-on-quarter.
Respondents cited the following reasons for their optimism:
1. A more robust domestic demand
2. Lower importation costs resulting from the peso appreciation
3. Enhancement of firms\\\' administrative and marketing strategies
4. Good cash flows