Philippines Businesses Less Pessimistic in August

2026-09-25 09:35 By Nicole Aliyah 1 min. read

The Business Confidence Index in the Philippines improved to -10.9 in August 2026 from -20.3 in July, as firms became less pessimistic, with the improvement attributed mainly to higher demand for goods and services.

Current-month indicators strengthened, with business activity rising to 7.0 from -0.1, total orders to 12.4 from -0.7, and financial conditions improving to -24.9 from -31.4.

Meanwhile, access to credit was slightly tighter at -7.2 from -7.0, while average capacity utilization increased marginally to 69.0% from 68.6%.

Three-month confidence rose to 24.6 from 3.7, while 12-month confidence increased to 36.4 from 29.4.

Firms also raised expectations for business activity and hiring over the next three months and 12 months, although the share of firms planning to expand operations over the next 12 months declined to 17.1% from 20.8%.

Year-ahead inflation expectations eased to 5.4% from 5.6%, but remained above the Bangko Sentral ng Pilipinas’ 4.0% upper bound.



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Philippines Businesses Less Pessimistic in August
The Business Confidence Index in the Philippines improved to -10.9 in August 2026 from -20.3 in July, as firms became less pessimistic, with the improvement attributed mainly to higher demand for goods and services. Current-month indicators strengthened, with business activity rising to 7.0 from -0.1, total orders to 12.4 from -0.7, and financial conditions improving to -24.9 from -31.4. Meanwhile, access to credit was slightly tighter at -7.2 from -7.0, while average capacity utilization increased marginally to 69.0% from 68.6%. Three-month confidence rose to 24.6 from 3.7, while 12-month confidence increased to 36.4 from 29.4. Firms also raised expectations for business activity and hiring over the next three months and 12 months, although the share of firms planning to expand operations over the next 12 months declined to 17.1% from 20.8%. Year-ahead inflation expectations eased to 5.4% from 5.6%, but remained above the Bangko Sentral ng Pilipinas’ 4.0% upper bound.
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