Businesses and consumers in the Philippines are showing diverging sentiment, according to a report from Philstar Biz. Firms turned less pessimistic in May while consumers grew more downbeat in the second quarter, reflecting a split in outlook.
Business optimism improved as companies pointed to easing cost pressures and stronger demand. This shift suggests that the corporate sector sees a more favorable operating environment ahead, driven by stabilizing input costs and recovering market activity.
In contrast, households remained weighed down by inflation fears and concerns over governance. Consumer confidence weakened despite the broader economic recovery, indicating that high living costs and institutional issues continue to dampen public sentiment.