Pessimism Due Mainly to Iran Conflict
The overall business confidence index turned pessimistic in March 2026 at -24.3%, the lowest recorded confidence metric since last quarter of 2001.
Firms attributed their pessimism to the ongoing Middle East conflict, whic led to a sharp increase in domestic pump prices, according to the latest Bangko Sentral ng Pilipinas (BSP) Business Expectations Survey (BES) report.
Higher Fuel Cost Seen to Dampen Consumption
BES data further states that Philippine businesses consequently expect consumer spending to slow, as higher fuel costs are seen to feed into the prices of other basic goods and services.
A negative outlook is also seen from firms for the quarter ahead, extending to the rest of the year.
Meanwhile, industry players still saw scope for expansion over the same period.
“Despite prevailing uncertainties, some companies indicated that they would proceed with their expansion plans, as these were already in the pipeline even before the Middle East conflict started,” BSP says.
