FX.co ★ Philippines Business Confidence Turns Negative in March

The Business Confidence Index in the Philippines fell into negative territory at -24.3 in March 2026, down from 8.2 in February, indicating a sharp deterioration in sentiment. The downturn was largely attributed to the ongoing US–Iran conflict, which led to a significant rise in domestic fuel prices. Businesses also anticipated softer consumer spending, as higher fuel costs continued to pass through to the prices of basic goods and services.

Over the month, views on key business conditions worsened further: assessments of financial conditions deteriorated (-24.9 vs -19.2 in February), access to credit became more constrained (-7.1 vs -0.6), and expectations for order books weakened (-2.7 vs -0.1). At the same time, optimism surrounding the volume of business activity moderated, though it remained marginally positive (2.2 vs 3.5).

Looking ahead, the business outlook declined sharply. Expectations for the next three months turned pessimistic (-17.3 vs 37.4), while confidence for the year ahead, though still positive, eased substantially (11.7 vs 51.1), signaling growing uncertainty over the medium-term economic environment.