Philippine business confidence declined in the third quarter of 2025, according to a survey by the Bangko Sentral ng Pilipinas (BSP), with firms citing slack in demand during the “ghost month” and the onset of the rainy and typhoon season.
The overall business confidence index (CI) fell to 23.2 percent in the third quarter from 28.8 percent in the second quarter. A positive CI indicates that more firms are optimistic than pessimistic.
Looking ahead, business sentiment strengthened for the fourth quarter, with the CI rising to 49.5 percent. However, the outlook for the next 12 months softened to 48.1 percent. Despite the lower year-ahead CI, it remained positive, reflecting continued business optimism about near-term economic prospects.
Global headwinds, such as higher US tariffs, geopolitical tensions, and weaker foreign demand, also weighed on sentiment, the BSP’s Business Expectations Survey (BES) showed.
Firms also expect inflation over the next 12 months to stay within the government’s target range, indicating firmly anchored business inflation expectations.
The BSP uses the BES as a key economic surveillance tool to help formulate monetary policy.
