BUSINESS sentiment in the Philippines became less pessimistic in September 2026, but firms flagged continued concerns over elevated fuel costs, rising inflation, and peso depreciation, among others, based on the results of the latest Business Expectations Survey (BES) of the Bangko Sentral ng Pilipinas (BSP).
Based on the report, the overall Business Confidence Index (CI) improved to -8.4 percent in September 2026, from the -10.9 percent in August 2026.
A negative CI means that more respondents are pessimistic than optimistic about the economy.
The central bank explained, however, that firms attributed their pessimism mainly to elevated fuel and energy costs and rising prices.
Other concerns included Middle East tensions, peso depreciation, and weather-related disruptions.
Respondent firms noted that financial condition was less tight in September compared to August as the confidence index, albeit still negative, improved to -19.8 percent from the -24.9 percent in August.
Financial condition, the central bank said, refers to the firm’s general cash position considering the level of cash and other cash items and repayment terms on loans.
Meanwhile, the report noted that firms’ access to credit remained tight in September, with the index staying at the -7.2 percent level seen in August, still worse than the -7 percent in July.
At least 73.5 percent of the firms in industry and construction were more optimistic about average capacity utilization in September, higher than the 69 percent in August.
Outlook
Despite their pessimism in September, the firms had an optimistic outlook over the 3- and 12-month horizons.
According to the BSP, optimism three months from now was driven by the expected higher business activity during the holidays and the rice harvest seasons.
Based on the report, however, fewer firms were optimistic for both time frames. The percentage of firms which expressed optimism in the next three months declined to 20.9 percent in September from the 24.6 percent in August.
Likewise, the percentage of businesses which expressed positive outlook in the next 12 months fell to 26.5 percent in September, from the 36.4 percent in August.
Year-ahead optimism, the central bank explained, reflected growth opportunities in selected sectors, particularly health care, education, tourism, financial services, real estate development, and trade-related activities.
The central bank also noted that employment outlook 12 months ahead remained positive but was less favorable than in the previous survey round.
More industry firms also planned to expand operations, the BSP noted.
The BSP said it continues to monitor developments in the Middle East and their potential effects on business and consumer sentiment, spending, and investment.
billboards do the job socmed
‘These indicators are among those considered in the BSP’s monetary policy decisions,’ the central bank also said in its statement over the weekend.
BSP said the September 2026 BES was conducted from September 4 to 30, 2026.
There were 515 firms surveyed nationwide, consisting of 193 companies in the National Capital Region (NCR) and 322 firms in areas outside the NCR, covering all 18 regions across the country.