Registered business names down 7% in September

MANILA, Philippines —  Business names registered with the Department of Trade and Industry (DTI) fell by seven percent in September from a year ago amid weather disruptions and slower economic growth stemming from the from the ongoing Middle East conflict.

DTI data showed that 68,677 business names were registered with the agency in September, down from 73,705 filings in the same month last year.

Of the total filings in September, 60,140 are new business names, while 8,537 are renewals.

By sector, wholesale and retail trade, including repair of motor vehicles, motorcycles and personal goods, accounted for the biggest share, with 34,343 filings in September.

Accommodation and food service activities followed with 9,723 business name registrations.

Manufacturing placed third with 4,244 filings.

“The year-on-year decline in business name registrations may be partly attributed to weather-related disruptions that led to reduced working days or business days due to the series of storms, floods or typhoons,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said in an email.

He said slower economic growth and higher interest rates and prices due to the Middle East conflict may also have affected business registrations.

From January to September, business names registered with the DTI reached 916,523, up by seven percent from 856,642 filings in the same period last year.

“The year-on-year increase from January to September  may be consistent with continued organic growth in sales and earnings for some of the country’s biggest companies or conglomerates, as well as continued expansion nationwide as a source of organic business growth,” Ricafort said.

Going forward, he said faster government infrastructure spending may boost the economy and create more jobs and other business opportunities.

However, he said the super El Niño from the fourth quarter  until early 2027, as well as the minimum wage in Metro Manila, are risk factors that may potentially weigh on new business openings or could even lead to some business closures.

“Higher business and economic activities in the fourth quarter amid the Christmas holiday-related sales or spending, among the highest if not the highest in a typical year, would lead to more business opportunities,” he said.