MANILA – Business confidence in the Philippines softened in January 2026 but remained positive, according to the latest Bangko Sentral ng Pilipinas (BSP) Business Expectations Survey (BES).

The Confidence Index (CI) for January registered 0.9 percent, lower than the 29.7 percent recorded in the fourth quarter of 2025. Despite the dip, more businesses remained optimistic than pessimistic about economic conditions.

Outlook shows signs of recovery

The BSP noted that three-month-ahead and year-ahead CIs rose to 33.3 percent and 38.6 percent, respectively, reflecting expectations of higher consumer demand, improved domestic economic conditions, and more favorable investment prospects. “The continued positive outlook in January 2026 is supported by expectations of higher consumer demand and enhancements in business processes,” the BSP said.

Stronger sales, better economic conditions, and anticipated improvements in investment opportunities were cited as key drivers of business optimism for the next quarter and over the next 12 months.

Shift to monthly survey for closer monitoring

The January survey marks the inaugural monthly BES, shifting from the previous quarterly schedule. The BSP said this allows for closer monitoring of business sentiment and faster responses to rapidly changing 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 central bank said.

The monthly BES uses the same sampling frame and questionnaire as the quarterly version, with minor adjustments to the reference period. Each monthly survey now covers around 500 firms nationwide, compared with one-third of the previous quarterly coverage of about 1,500 firms.