Firms’ optimism slips in Q1
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OPTIMISM among businesses in the country slipped this quarter, weighed partly by concerns over rising prices of oil and other commodities, results of the latest Business Expectations Survey which the central bank released yesterday showed.Still, the Bangko Sentral ng Pilipinas (BSP) noted that the overall confidence index -- computed as the percentage of respondents who answered in the affirmative less the percentage of those who answered in the negative with respect to their views on specific indicators -- remained "strong" at 47.5% this quarter. Specifically, the first quarter 2011 index slid from 50.6% in the fourth quarter last year, but was still better than the 39.1% recorded in Jan.-March 2010, the BSP data showed. The central bank attributed the survey respondents’ "less upbeat" quarter-on-quarter outlook to the usual slowdown in business activity after the Christmas and harvest seasons, rising prices of oil and other commodities, and the expected impact of "abnormal weather conditions," apparently referring to the heavy rains and floods that hit the country’s eastern provinces from southern Luzon to Mindanao. World oil prices have been on the rise, fueled by fears of long-drawn unrest in the Middle East. Brent on Wednesday increased 5.3% to settle at $111.25 per barrel (/bbl). It averaged $102.67/bbl on Feb. 1-23 from $96.91/bbl last Jan. 3-31. Dubai crude, a benchmark for local fuel prices, eased slightly to $102.55/bbl on Wednesday from $103.44/bbl the day before. But its average rose to $98.50/bbl on Feb. 1-23 from $92.55/bbl last Jan. 3-31. Prices of all oil products at home rose by 50 centavos last Monday. The central bank also noted that respondents’ outlook for the second quarter improved to an all-time-high 59.4% from the 51% recorded in Oct.-Dec. 2010. It noted that the second quarter outlook was the highest since the survey started in 2001. It attributed this to respondents’ continued confidence in the current administration, as well as expectations of faster recovery among developing economies, robust growth of merchandise exports, continued strong inflows of remittances and foreign capital, and the government’s "front-loading" of spending and plans to undertake big-ticket infrastructure projects under the public-private sector partnership (PPP) scheme. "Sustained business optimism indicates that growth momentum could continue in 2011," a BSP statement read. Among the sectors monitored, construction and industry displayed the most optimism for the current quarter due to expected opportunities in the state’s PPP thrust, as well as the increase in demand for residential and commercial buildings. However, expectations dipped in services -- consisting of financial intermediation, hotels and restaurants, renting and business activities, as well as community and social services -- a development the central bank blamed on the seasonal slack in demand after the holidays, rising cost of operations and higher fuel prices. The outlook for the second quarter, however, was more upbeat across all sectors, the same data showed. The latest survey was conducted among representatives of 1,630 firms nationwide last Jan. 6-Feb. 14. It had a 78.2% response rate.
Fare increase for light rail lines deferred
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THE LIGHT RAIL Transit Authority (LRTA) yesterday deferred implementation of higher fares for Metro Manila’s three railways, initially set for March 1, pending consultation with the Land Transportation Franchising and Regulatory Board (LTFRB) and publication of the new rates.
"The fare adjustment for [Light Rail Transit lines 1 and 2] and [Metro Rail Transit-3] has been deferred," LRTA spokesman Hernando T. Cabrera told reporters in Filipino after an LRTA board meeting yesterday. "This does not mean the new fares will no longer take effect; only that implementation has been deferred. There is a need to consult LTFRB and for publication." Executive Order 603, issued on July 12, 1980, formed the LRTA and imbued it with the power to determine fares, but said it has to consult LTFRB -- referred to in the order by its former name, the Board of Transportation -- on this matter. Mr. Cabrera said the LRTA board has yet to determine a "definite date" for the fare hike implementation." The LRTA board also decided on a 20% discount for students on all three light railways, adding to the current beneficiaries composed of senior citizens and the disabled, he added. The provisional fare adjustment announced last Jan. 11 would add an average P10 to current rates, which now range from P12 to P20 for all three lines. | 
