NSCB - Press Release - NSCB Renews Clearance of the Business Expectations Survey

NSCB Renews Clearance of the Business Expectations Survey
(NSCB-PR-201112-PP1-11, Posted 09 December 2011)

NSCB Renews Clearance of the Business Expectations Survey The National Statistical Coordination Board (NSCB) approved anew the clearance for the conduct of the Business Expectations Survey (BES) on November 15, 2011 under the Statistical Survey Review and Clearance System (SSRCS). The Bangko Sentral ng Pilipinas (BSP) will conduct this quarterly survey to provide decision makers and other stakeholders supplemental indicators for short-term planning, forecasting, risk management and surveillance activities. Results of the survey will: (a) provide monetary authorities with advance information on the current and near-term economic and business conditions and other indicators of aggregate demand for the formulation of monetary policy; and (b) give a view of different groups on current and near-term business conditions including levels of production and economic activity that could influence the movement of key economic variables, namely: gross domestic product (GDP), interest rates, peso/dollar exchange rates and inflation rates.

About 1,600 firms from industry (manufacturing), construction, services and wholesale and retail trade sectors included in the Top 7,000 corporations of the Securities and Exchange Commission (SEC) will be surveyed in January, April, July and October 2012. The major data items to be collected from the survey include: (a) overall business outlook; (b) present tendencies (volume of business activity, total order book, export and import order book, selling price, stocks, capital expenditures, net income, business conditions financial conditions, access to credit, capacity utilization and number of employees); (c) limiting factors to increased business activity; (d) future tendencies (volume of business activity, import and export order book, business conditions, selling price, number of people employed and expansion plans); (e) expectations on economic indicators such as exchange rate, inflation rate and interest rate; and (f) characteristics of the firm (type of business, company name and address, product line, name of respondent and contact details).

The latest results of the Business Expectations Survey (BES) revealed that the business confidence index grew from 34.1 percent in Q3 2011 to 38.7 percent in Q4 2011 due to higher seasonal demand, while it decelerated by 11.9 percentage points compared with the same quarter a year ago. In terms of international trade in Q4 2011, importers had favorable outlook due to high anticipated local demand for goods and services during the holidays. Exporters, on the other hand, were less optimistic with business activities because of the expected weak demand in the international market. Meanwhile, 27.0 percent of the respondent firms signified plans for expansion in Q1 2012. Peso appreciation, increase in interest and inflation rates were also anticipated by firms in Q4 2011 and Q1 2012.

Reports on the quarterly BES results for 2012 shall be disseminated to the public on February 23 (for Q1 2012), May 24 (for Q2 2012), August 23 (for Q3 2012) and November 22 (for Q4 2012).

The SSRCS is a mechanism institutionalized by the NSCB through Memorandum Circular Nos. 4-88 and 04-95, which aims to: (1) ensure sound design for data collection, (2) minimize the burden placed upon respondents; (3) effect economy in statistical data collection; (4) achieve better coordination of government statistical activities; and (5) inform the private sector and the public in general that a government survey operation has passed clearance and enjoin their cooperation in the conduct of the survey.

Reports on the quarterly results of the BES can be accessed at: http://www.bsp.gov.ph/publications/regular_business.asp.

ROMULO A. VIROLA
Secretary General

Contact Persons:

Millicent Gay B. Tejada
Patricia Anne L. Rivera

Tel. No.: (632) 890-9404
Telefax Nos.: (632) 895-2436, 890-8456
E-mail addresses: mgb.tejada@nscb.gov.ph, pal.rivera@nscb.gov.ph

Statistical Survey Review and Clearance System (SSRCS)

Executive Order No. 352