Business confidence in Philippine economic conditions moderated in January but remained in positive territory, according to the latest survey conducted by the Bangko Sentral ng Pilipinas (BSP).
Results of the January 2026 Business Expectations Survey (BES), released Friday, showed that optimists continued to outnumber pessimists, with the Confidence Index (CI) posting a positive 0.9 percent.
Although significantly lower than the 29.7 percent recorded in the fourth quarter of 2025, the January CI reflected improving sentiment going forward. The BSP noted that the three-month-ahead and year-ahead CIs climbed to 33.3 percent and 38.6 percent, respectively, signaling stronger expectations for the near and medium term.
“The continued positive outlook in January 2026 is supported by expectations of higher consumer demand and enhancements in business processes,” the BSP said.
The central bank added that anticipated increases in consumer demand and sales, better domestic economic conditions, and more favorable investment prospects contributed to stronger business sentiment for the next quarter and the coming 12 months.
The BSP said the inaugural monthly BES marks the beginning of more frequent monitoring of business sentiment in the Philippines. Transitioning from a quarterly to a monthly survey framework will enable the central bank to track shifts in business confidence more closely and respond more effectively to rapidly evolving domestic and external developments.
“The shift to a monthly conduct of BES aligns with the BSP’s broader efforts to enhance and expand its existing macroeconomic surveillance toolkit,” the BSP said.
According to the BSP, the monthly BES retains the same sampling frame and questionnaire used in the quarterly survey, with only minor adjustments to reflect the updated reference period. Each monthly round now covers approximately 500 firms nationwide—about one-third of the previous quarterly sample of roughly 1,500 firms.
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