MANILA -- Businesses and consumers are more optimistic in the last quarter of the year, recent surveys by the Bangko Sentral ng Pilipinas (BSP) showed.

Based on the central bank's latest Business Expectations Survey, businesses' confidence index jumped to 44.5 percent in the fourth quarter, from 32.9 percent in the second quarter.

Most businesses said they were more bullish because of they are anticipating greater demand for good and services like agricultural products, infrastructure projects, shipping and distribution services, and transportation during the holiday season. 

Easing inflation, lower interest rates, and the expansion and improvement of business operations also boosted business sentiment.

Consumers confidence also increased, even as the numbers remained in the negative territory. The BSP's Consumer Expectation Survey showed that consumer confidence went up to -11.1 percent, from -15.6 percent in the third quarter.

Consumers said they are expecting higher and additional sources of income, more working family members, more available jobs, and permanent employment.

The number of households with savings also declined in the third quarter, while those with loans remained the same.

Consumers expect higher interest rates and a weaker peso in the fourth quarter. Businesses also expect higher interest rates but are seeing a stronger peso.

Businesses also expect inflation to pick up to an average of 3.6 in the fourth quarter. This, however, is still within the government's target range of 2 to 4 percent.

Businesses optimistic, consumers still pessimistic in Q3 2024: BSP

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