Philippine businesses remained pessimistic in September as high fuel and energy costs weighed on operations, although sentiment improved slightly from August, according to the Bangko Sentral ng Pilipinas (BSP).
The latest Business Expectations Survey showed the overall confidence index at -8.4 percent, up from -10.9 percent a month earlier. The negative reading means pessimists continued to outnumber optimists.
Beyond rising prices, firms cited Middle East tensions, peso depreciation and weather-related disruptions among the factors dampening confidence.
Businesses remained upbeat about prospects three months and a year ahead, but optimism weakened across both periods.
The confidence index for the next three months fell to 20.9 percent from 24.6 percent in August. Firms nevertheless expected the holiday season and rice harvest to lift business activity.
The year-ahead index declined more sharply to 26.5 percent from 36.4 percent, although respondents continued to identify growth opportunities in healthcare, education, tourism, financial services, real estate development and trade-related activities.
| Outlook | August 2026 | September 2026 |
|---|---|---|
| Current month | -10.9% | -8.4% |
| Three months ahead | 24.6% | 20.9% |
| Twelve months ahead | 36.4% | 26.5% |
Positive readings indicate that optimists outnumber pessimists; negative readings indicate the reverse.
Price pressures remained a concern, with respondents expecting inflation to stay above 4 percent, the upper limit of the BSP’s 2–4 percent target range.
The employment outlook for the next 12 months remained positive but softened from the previous survey. Meanwhile, more industry firms planned to expand operations.
Respondents identified easing inflation, simpler business procedures, a possible resolution of the Middle East conflict and stronger investor confidence as factors that could support future growth.
The BSP said it continues to monitor developments in the Middle East and their potential impact on confidence, spending and investment. These indicators help inform its monetary policy decisions.
