STABLE WEATHER will help the retail industry build on the growth of consumption and end the year with stronger results, according to a specialty retailer.
SSI Group, Inc. Chief Executive Officer Anthony T. Huang said that industry results have been muted in the first half.
“But the general consensus is that in the third quarter, things started to pick up consumption-wise. So, I think that bodes well for the fourth quarter,” Mr. Huang told BusinessWorld.
The Philippine Statistics Authority reported that household final consumption expenditure grew 5.1% in the third quarter.
Among the top five contributors to growth in private consumption was food and non-alcoholic beverages, which grew 3.2% in the quarter.
Mr. Huang said weather plays a major role in how well the industry performs.
“Should (stable weather) happen, I think we will end the year on a very strong note,” he added.
Philippine Retailers Association President Roberto S. Claudio said stormy weather dampens customer traffic.
“It is not something we can control. It’s just delayed customer consumption once the weather clears up,” Mr. Claudio said via Viber.
Earlier this month, the National Economic and Development Authority said it expects an increase in spending during the holidays as commodity prices stabilize and interest rates fall. It noted the robustness of the labor market.
Mr. Huang also said that the industry may sustain growth next year as its performance improves in the second half.
“We’re looking at a good 2025. We think that 2025 as a whole, taking into account the momentum of the second half of this year, should be good,” he said.
“Even from a global economy standpoint, taking into account what has just happened in the US, regardless of what your political beliefs are, I think that bodes well for the global economy as a whole. You can see the major bounce back in the US,” he added.
However, he said that China remains a bit challenged but noted that “everything comes in cycles, so things should get better.” — Justine Irish D. Tabile