Consumer confidence improved while business sentiment moderated in the third quarter of 2025, according to the latest surveys released by the Bangko Sentral ng Pilipinas (BSP).
Filipino consumers were less pessimistic in Q3 2025, with the overall consumer confidence index (CI) rising to minus 9.8 percent from minus14.0 percent in Q2. The improved outlook was driven by additional income sources, higher earnings, and more household members joining the workforce.
Expectations for the next quarter and the next 12 months also turned more positive. Inflation expectations remained within the government’s target range, reflecting well-anchored household outlooks and supporting consumption-driven growth.
Meanwhile, business sentiment weakened in the third quarter, as the CI fell to 23.2 percent from 28.8 percent in Q2. Firms cited seasonality factors such as “ghost month,” rainy weather, and external pressures including global trade tensions and weaker foreign demand.
Despite the dip, business optimism for Q4 2025 improved significantly, with CI climbing to 49.5 percent. However, the outlook for the next 12 months softened slightly to 48.1 percent. Firms still expect inflation to stay within target, indicating stable inflation expectations among businesses.
The BSP’s Business Expectations Survey (BES) and Consumer Expectations Survey (CES) are key tools for monitoring economic sentiment and guiding monetary policy decisions.
As lead indicators, the numbers signal changes before these are captured by official statistics, such as whether Filipinos still make large-item purchases that help drive economic expansion and whether businesses hire workers, expand operations or invest in news projects.
