Philippine businesses grew more optimistic about the economy in the fourth quarter of 2025 as companies anticipated a surge in consumer spending during the holiday season, according to central bank data released Friday.
The overall business confidence index rose to 29.7 percent from 23.2 percent in the third quarter, the Bangko Sentral ng Pilipinas (BSP) said. However, it was down from 44.5 percent in the fourth quarter of 2024.
A positive index means more respondents are optimistic than pessimistic.
The latest Business Expectation Survey, which polled 1,521 firms nationwide, indicated that a larger volume of businesses held a positive outlook for the current period.
Aside from the holiday rush, respondents attributed the improved sentiment to higher productivity and operational efficiency.
The rollout of new products and services along with a favorable inflation environment also bolstered confidence for the final months of the year.
However, the outlook for the coming months appeared less sanguine. The confidence index for the next quarter fell to 23.7 percent, while the 12-month outlook dipped to 40.4 percent.
These figures represent a significant decline from the 49.5 percent and 48.1 percent recorded respectively during the third quarter survey.
The BSP said the lingering effects of recent natural calamities and the negative impact of corruption allegations on investor sentiment weighed down the outlook for the upcoming periods.
Despite the dip, the BSP noted that projected sentiment remained positive, reflecting continued optimism regarding the economy’s near-term prospects.
Businesses also maintained their expectation for the fifth consecutive quarter that inflation would remain within the government’s target range over the next 12 months.
