Philippines Business Optimism Index

Transcription

1 DUN & BRADSTREET Philippines Measuring Confidence Measured Decisions

2 BUSINESS OPTIMISM INDEX The Dun & Bradstreet (BOI) report is a measure of business confidence in the economy. Released quarterly, it measures the pulse of the business community and is one of the most effective ways to track how the business community perceives the business environment, and where they think it is going. Over time, this quarterly survey has emerged as a leading indicator of turning points in economic activity in countries which it is published. SURVEY METHODOLOGY For the purpose of conducting the survey, a sample is randomly selected from Dun & Bradstreet database, consisting of companies belonging to the following sectors including Agriculture, Construction, Utilities, Finance, Manufacturing, Mining, Services, Transportation, Wholesale, and Real Estate. AGRICULTURE CONSTRUCTION UTILITIES FINANCE RS REAL ESTATE All the respondents in the survey are asked six standard questions regarding their expectations as to whether the following critical parameters pertaining to their respective companies will register an increase ( ), decline ( ) or show no change ( ) in the ensuing quarter as compared to the same quarter in the prior year: Volume of Sales, Net Profits, Selling Prices, New Orders, Inventory Levels, and Employees. SALES VOLUME NET PROFIT SELLING PRICE NEW ORDERS INVENTORY EMPLOYMENT The individual indices are then calculated by subtracting the percentage of respondents expecting decreases from those expecting increases. Unless otherwise stated, increases and decreases in indices represent changes from the previous quarter.

3 Slow Rise in PH BusinessOptimism Towards the End of 17 Philippine business community remains confident for of 17 with hopes of growth in number of orders and increase in sales. Dun & Bradstreet Philippines is ending the year at 57.6 which shows a slight rise from previous quarter's The general positive outlook was seen in 6 indicators - volume of sales, net profit, selling price, new orders, inventory level and employment. 61 of the respondents increased positive expectations while 3 decreased. Agricultural, construction and wholesale sectors turn to be the most optimistic this quarter. Factors affecting this outlook are anticipation of consumer demands in the upcoming holiday season for the wholesalers and assumption of favorable weather conditions for agricultural products. More businesses are also confident that new orders will come in with an over-all score of Duterte government's initiative of 'Build, Build, Build' program wherein the government is expected to spend more in infrastructure projects is seen to boost the construction sector s growth. NEDA s OIC and Undersecretary for Investment Programming, Rolando G. Tungpalan also shared that, "sustained infrastructure development, translating to increase in public construction expenditure, is anticipated not only to increase the growth of the manufacturing sector, but also to support the continuous growth of the economy." On the other hand, mining sector remains to be the less optimistic mainly due to the plan of the newly appointed Environment Secretary Roy Cimatu to impose higher tax on mining operations and implement future policies to expand the required rehabilitation funds for miners. Overall, the modest increase of this quarter's optimism shows that 18 will be more challenging for businesses and that growth plans should not be abandoned as the country's economists are pushing for stronger revenue generating policies through the tax reform bill. BOI SCORE OVER BOI SCORE CHART Composite BOI GDP Growth (y-o-y ) GDP GROWTH ()

4 VOLUME OF SALES NET PROFIT

5 SELLING PRICE NEW ORDER

6 INVENTORY LEVELS EMPLOYMENT

7 ABOUT DUN & BRADSTREET (D&B) Dun & Bradstreet (NYSE: DNB) grows the most valuable relationships in business. By uncovering truth and meaning from data, we connect customers with the prospects, suppliers, clients and partners that matter most, and have since Nearly ninety percent of the Fortune 5, and companies of every size around the world, rely on our data, insights and analytics. For more about Dun & Bradstreet, visit Dun & Bradstreet, Inc. 17. All rights reserved. Your Vision Our Insight Market Intelligence to Navigate Market Risk D&B s Country Insight Solutions monitor changes in the business environment of individual countries and forecast countrywide developments which may affect the level of risk or provide opportunities in the short to medium term. If your business trades overseas and needs up-to-date Credit, Political, Supply Chain risk, or Commercial insight, D&B s country level solutions let you integrate our leading country data, predictive analysis and commercially relevant insight in your business processes to help you deliver a competitive advantage.