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The Makati-Taguig skyline in this photo taken on April 12, 2024.   Gigie Cruz, ABS-CBN News

Article (news)

PH ECONOMY

Arthur Fuentes

ABS-CBN News

MANILA — Philippine business confidence worsened for a second consecutive month in April as the ongoing conflict in the Middle East sparked fears of elevated inflation and rising operating costs, the Bangko Sentral ng Pilipinas reported.According to the latest monthly Business Expectations Survey (BES) released by the BSP, the country&#x27;s business confidence index (CI) plummeted to -35.8 percent in April, down from -24.3 percent in March. A negative index indicates that pessimistic respondents outnumber optimists.Firms expressed deep concern that sustained inflation would erode household purchasing power and drive up business expenses. Furthermore, a smaller share of industrial firms reported plans for expansion amid volatile fuel prices and heightened global uncertainty.Despite the immediate gloom, the medium- and long-term outlooks showed notable improvement. The three-month-ahead CI rose to -7.5 percent from -17.3 percent, while the 12-month-ahead CI climbed to 19.5 percent from 11.7 percent. Firms cited expectations of stronger consumer demand, higher sales, and a potential resolution to the Middle East crisis for the future optimism.The survey also highlighted favorable hiring intentions for the year ahead, though businesses warned that average 12-month inflation expectations still exceed the BSP’s 4.0-percent ceiling.The BSP, which shifted to a monthly survey format in January to track economic sentiment more accurately, stated it remains ready to act. The central bank affirmed it will take necessary monetary action to anchor inflation expectations to its 3-percent target and protect the domestic economy.The central bank raised interest rates by 25 basis points in its last policy meeting in April as inflation again breached the target range of economic managers.

Firms expressed deep concern that sustained inflation would erode household purchasing power and drive up business expenses. F

Firms expressed deep concern that sustained inflation would erode household purchasing power and drive up business expenses. F

Philippine business confidence hits new low on Mideast conflict—BSP

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Philippine business confidence hits new low on Mideast conflict—BSP

Arthur Fuentes,

ABS-CBN News

Published May 29, 2026 01:37 PM PHT

Read More:

BSP

Bangko Sentral ng Pilipinas

business confidence

interest rates

inflation

Middle East

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