The report noted that the business confidence index for the fourth quarter of 2024 jumped to 56.8%, a sharp increase from the 43.7% recorded in the previous quarter.
The improved sentiment is driven by expectations of higher demand for goods and services, eased inflation, and pre-holiday business activity.
The outlook for the next 12 months also saw an increase, with the overall confidence index rising to 58%, up from 56.5% in the previous survey.
This uptick reflects business leaders' anticipation of continued economic growth, driven by factors such as the expansion of business operations and seasonal business boosts.
In the current quarter, the business confidence index held steady at 32.9%, slightly up from 32.1% in the second quarter of 2024.
Optimism was fueled by rising demand in sectors like food, beverage, apparel, education, and personal services. However, sentiment across industries was mixed, with the construction and services sectors more optimistic, while the industry and wholesale and retail trade sectors were less buoyant.
Despite the positive outlook, businesses expect financial conditions to remain tight in the coming months. Firms anticipate a weaker peso and higher borrowing costs for the remainder of 2024, alongside inflation rates that could exceed the government’s target.
Overall, the survey shows that businesses are gearing up for a stronger finish to 2024 and remain optimistic about growth prospects over the next year, the central bank said.