Philippine business sentiment improved in June as firms expected lower oil prices and energy costs to support increased business activity during the period, results of the latest Business Expectation Survey (BES) show Friday.

BES data also show firms anticipated a boost in consumer spending following the reopening of schools during the month.

Over the next 12 months, firms expected business conditions to improve further despite concerns that inflation could breach the Bangko Sentral ng Pilipinas (BSP)’s four-percent tolerance ceiling in 2027.

A large share of industry firms and firms across all sectors indicated plans to expand operations and increase hiring, respectively, both of which could support economic growth.

Against this backdrop, firms’ confidence index was neutral in June and highly optimistic for the next 12 months. Bangko Sentral ng Pilipinas