FX.co ★ Philippines Business Sentiment Less Pessimistic in May

The Business Confidence Index in the Philippines improved to -25.2 in May 2026 from -35.8 in April. This uptick was largely attributed to expectations of stronger consumer spending and corporate earnings, as well as lower oil prices and energy costs.

During the month, firms were notably less pessimistic about several key indicators: financial conditions (-25.7 vs -35.5 in April), order books (-2.2 vs -15.6), access to credit (-7.3 vs -9.9), and overall business activity (-4.5 vs -15.3).

The three-month business outlook also turned positive, rising to 0.6 from -7.5 previously. This improvement was underpinned by expectations of stronger growth in the manufacturing, construction, and business process outsourcing sectors, increased public infrastructure spending, and further declines in oil prices.

Looking ahead over the next year, confidence strengthened significantly, with the index climbing to 27.8 from 19.5. This reflected expectations of easing inflation and oil price pressures, a possible resolution of the conflict in the Middle East, and a rebound in investor confidence.