Philippines Business Confidence Recovers in June

The Business Confidence Index in the Philippines improved sharply to 0.0 in June 2026 from -25.2 in the previous month. The turnaround was driven by expectations of higher consumer spending with the start of the new academic year, alongside lower oil prices and energy costs. Notable improvements in the volume of business activity (8.3 vs -4.5 in May), total orders booked (5.4 vs -2.2), and access to credit (-5.7 vs -7.3), while average capacity utilization increased (73.9% vs 70.5%). However, firms continued to report weak financial conditions, with the financial condition remaining negative at -26.8 from -25.7 in the previous month. Looking ahead, the three-month business outlook strengthened to 18.8 from 0.6, while one-year confidence rose to 42.4 from 27.8, supported by expectations of stronger consumer demand, easing inflation, improved economic conditions, and a possible resolution of the Middle East conflict.

The Business Confidence Index in the Philippines rose to -25.2 in May 2026 from -35.8 in the previous month. The improvement was driven by expectations of stronger consumer spending and corporate earnings, along with lower oil prices and energy costs. During the month, firms were less pessimistic about financial conditions (-25.7 vs -35.5 in April), order books (-2.2 vs -15.6), access to credit (-7.3 vs -9.9), and business activity (-4.5 vs -15.3). Additionally, the three-month business outlook turned positive (0.6 vs -7.5), supported by expectations of stronger growth in the manufacturing, construction, and business process outsourcing sectors, higher public infrastructure spending, and declining oil prices. Confidence for the year ahead improved to 27.8 from 19.5, reflecting expectations of easing inflation and oil price pressures, a possible resolution of the Middle East conflict, and a recovery in investor confidence.

The Business Confidence Index in the Philippines fell further to -35.8 in April 2026 from -24.3 in the previous month, marking the second consecutive month of decline. The pessimistic sentiment was driven by the US-Iran conflict, which raised concerns that higher inflation could increase firms’ operating costs and erode households’ purchasing power. During the month, sentiment continued to deteriorate regarding financial conditions (-35.3 vs -24.9 in March), order books (-15.6 vs -2.7), and access to credit (-9.9 vs -7.1), while the volume of business activity fell sharply to -15.3 from a 2.2 increase in the prior month. Meanwhile, the business outlook declined at a softer pace (-7.5 vs -17.3), while confidence for the coming year improved (19.5 vs 11.7), supported by expectations of stronger demand, higher sales and income, better economic conditions, and a possible resolution of the Middle East conflict.