The Central Bank of the Philippines published the latest monthly Business Expectations Survey showing that business sentiment weakened for a second straight month in April, with the confidence index falling to minus 35.8 percent from minus 24.3 percent in March. The decline reflected concerns that the Middle East conflict could keep inflation elevated, raise firms’ operating costs, and erode household purchasing power. Forward-looking sentiment improved despite the weaker current reading. The three-month-ahead confidence index rose to minus 7.5 percent from minus 17.3 percent, while the 12-month-ahead index increased to 19.5 percent from 11.7 percent, supported by expectations of stronger demand, higher sales and income, better economic conditions, and a possible resolution of the conflict. Firms also reported favorable hiring intentions over the next three and 12 months, although a smaller share of industry firms planned expansion because of higher fuel prices and uncertainty. Average 12-month-ahead inflation expectations remained above the Central Bank of the Philippines’ 4.0 percent tolerance ceiling, and the central bank said it is closely monitoring the conflict’s impact on prices and the broader economy and stands ready to take monetary action to prevent inflation expectations from de-anchoring from the 3 percent target.
Central Bank of the Philippines2026-05-29
Central Bank of the Philippines reports April business confidence index fell to minus 35.8 percent while near and medium term outlooks improved
The Central Bank of the Philippines’ latest Business Expectations Survey shows business sentiment weakened for a second consecutive month in April, with the confidence index falling to minus 35.8 percent from minus 24.3 percent in March amid concerns that the Middle East conflict could keep inflation elevated and raise operating costs. Forward-looking sentiment improved, with three- and 12-month-ahead confidence indices rising and firms reporting favorable hiring intentions, although fewer plan expansion due to higher fuel prices and uncertainty. The central bank said it is closely monitoring the conflict’s impact and stands ready to take monetary action to prevent inflation expectations from de-anchoring from the 3 percent target.