Businessmen have started to revive expansion plans amid signs of a recovering global and local economy, the latest central bank survey showed.

The Bangko Sentral ng Pilipinas (BSP) first quarter Business Expectations Survey (BES) presented Thursday said economic activities are expected to continue to pick up in the current and succeeding quarters.

According to the survey, business sentiment turned more optimistic, with the business confidence index for first quarter improving to 39.1 percent, which was the highest level in two years and other data showing the latest number as the second highest level reached since the survey started in 2001.

“Moderate inflation, the steady stream of overseas Filipinos remittances, and election-related spending are some of the factors that buoyed respondents” expectations of higher spending that will spur business activity,” said the BSP in its presentation.

“Furthermore, firms expected that continued foreign investment inflows will help provide funds for economic expansion. This favorable business outlook mirrors the improving business confidence in countries such as Hong Kong, Singapore, Australia, Europe, and the US,” the report added.

The BES noted that in the first quarter and even in the second quarter, business sentiments these are importers and exporters – both in the National Capital Region (NCR) and outside of the NCR has become more bullish compared to the entire 2009 period.

“Respondents involved in international commodity trading were more sanguine in their business outlook following indications of improving external demand for Philippine goods from key markets in Asia, Europe and the US. Businesses expect export growth to accelerate in the first two quarters of 2010.

All firms, regardless of the size of operations, reported stronger business confidence indicating that the economic recovery will benefit the business sector as a whole,” said the BSP.