The Central Bank of the Philippines reported that business sentiment improved in June, with firms expecting lower oil prices and energy costs, increased business activity and stronger consumer spending following the reopening of schools. The confidence index was neutral for June but highly optimistic for the next 12 months. Firms expected business conditions to improve further over the coming year despite concerns that inflation could exceed the central bank’s 4% tolerance ceiling in 2027. Many industry firms planned to expand operations, while firms across all sectors indicated plans to increase hiring. The central bank continues to monitor how developments in the Middle East affect business and consumer sentiment, household spending and investment decisions.
Central Bank of the Philippines2026-07-31
Central Bank of the Philippines reports neutral June business confidence and strong 12-month optimism
The Central Bank of the Philippines reported improved business sentiment in June, although the confidence index remained neutral for the month. Firms were highly optimistic about the next 12 months and planned further expansion and hiring despite concerns that inflation could exceed the 4% tolerance ceiling in 2027.