Business sentiment rebounded to neutral territory in June as firms anticipated lower fuel prices, reduced energy costs, and a boost in consumer spending tied to the opening of the school year.
According to the Bangko Sentral ng Pilipinas’ latest Business Expectations Survey, the overall confidence index (CI) recovered from prior weakness, pointing to a more balanced economic outlook among domestic enterprises.
Companies cited lower fuel and power overhead, alongside increased household spending during the school reopening, as primary catalysts expected to drive commercial activity in the near term.
Longer-term sentiment remained upbeat, with the 12-month confidence index rising to 42.4 percent on expectations of broader macroeconomic recovery.
The central bank noted that business optimism persisted even as firms flagged concerns that domestic inflation could breach the BSP’s 4.0 percent upper target limit in 2027.
A large share of industrial companies reported plans to expand operations, while firms across all sectors indicated intentions to hire additional workers over the next 12 months.
The BSP added that it is closely monitoring geopolitical developments in the Middle East for potential spillover effects on business and consumer confidence, household expenditure, and corporate capital investments.
