The Central Bank of the Philippines published its latest monthly Business Expectations Survey showing that overall business confidence improved in May. Firms linked the better sentiment to expectations that consumer spending will strengthen and support corporate earnings. Businesses were also more optimistic over the next 12 months, anticipating lower fuel prices, an easing of tensions in the Middle East, a better economic outlook over the next three and 12 months, and a recovery in investor confidence. The survey also pointed to stronger hiring intentions over the next three and 12 months as firms expect business activity to increase. At the same time, the share of industry firms planning to expand operations fell, reflecting continued uncertainty. Businesses expect inflation to remain elevated over the next 12 months and to stay above the Bangko Sentral ng Pilipinas' 4 percent tolerance ceiling. The central bank said it is closely monitoring how the Middle East conflict could affect domestic prices, the broader economy, and consumer and business expectations. The release also notes that the shift to a monthly Business Expectations Survey from January 2026 is intended to provide a timelier reading of business confidence and support a more proactive policy response to changing domestic and global conditions.
Central Bank of the Philippines2026-06-26
Central Bank of the Philippines reports improved May business sentiment as firms expect stronger spending and hiring
The Central Bank of the Philippines said its May Business Expectations Survey showed improved business confidence, driven by expectations of stronger consumer spending, better earnings and higher hiring. Firms were also more positive about the next 12 months, although they still expect inflation to remain above the Bangko Sentral ng Pilipinas' 4 percent tolerance ceiling. The central bank is monitoring the effects of the Middle East conflict on prices, growth and expectations.