2026.07.3108:20:29UTC+00Philippines Business Confidence Recovers in June

The Business Confidence Index in the Philippines rebounded sharply to 0.0 in June 2026, up from -25.2 in May. This turnaround was largely attributed to expectations of stronger consumer spending with the start of the new academic year, as well as lower oil prices and energy costs.

Firms reported notable improvements across several indicators: the volume of business activity rose (8.3 vs -4.5 in May), total orders booked increased (5.4 vs -2.2), and access to credit improved slightly (-5.7 vs -7.3). Average capacity utilization also climbed to 73.9% from 70.5%.

Despite these gains, businesses continued to experience weak financial conditions, with the financial condition index remaining in negative territory at -26.8, compared with -25.7 in the previous month.

Looking ahead, sentiment strengthened considerably. The three-month business outlook improved to 18.8 from 0.6, while the one-year confidence index rose to 42.4 from 27.8. These more optimistic views were underpinned by expectations of stronger consumer demand, easing inflation, better overall economic conditions, and a potential resolution of the conflict in the Middle East.