By the Blocktec Editorial Team
Philippine firms are less confident about the year ahead, according to the Bangko Sentral ng Pilipinas (BSP) Business Expectations Survey for September 2026. Confidence for the next 12 months fell to 26.5% from 36.4% in August, a drop of 9.9 points. Philstar, BusinessWorld, BusinessMirror and The Chronicle all reported the results between November 1 and 2, 2026.
What The Survey Found
The BSP ran the survey from September 4 to 30, 2026. Its confidence index is the share of optimistic firms minus the share of pessimistic firms. A positive number means optimists outnumber pessimists, and a negative number means the reverse.
Here are the key readings:
- Current month: -8.4% in September, a slight improvement from -10.9% in August, but still negative.
- Next three months: 20.9%, down from 24.6%.
- Next 12 months: 26.5%, down from 36.4%.
So the outlook for both the next quarter and the next year is still positive, but the cushion is thinner. For the current month, pessimists still outnumber optimists, even though the gap narrowed.
Why Firms Feel Less Sure
Respondents pointed to several pressures. The top worries were elevated fuel and energy costs, rising prices, tensions in the Middle East, the weaker peso and weather disruptions. For a business that imports inputs or moves goods by truck, those pressures add up quickly.
Firms also expect inflation to stay above 4%, the upper end of the BSP's 2-4% target range. That matters for anyone budgeting a project, since higher prices tend to feed into costs for materials, transport and labor.
On jobs, the 12-month hiring outlook stayed positive but softened. More firms in the industry sector, which includes construction, said they plan to expand operations.
Where Optimism Held Up
Businesses were most upbeat about healthcare, education, tourism, financial services, real estate development and trade. For the near term, they hoped holiday spending and the rice harvest would lift activity.
Respondents also named things that could improve the mood: easing inflation, simpler business procedures, an end to the Middle East conflict and better investor confidence.
How The Survey Was Done And What Comes Next
The BSP surveyed 515 firms across all 18 regions. Of these, 193 were in the National Capital Region and 322 were outside it. The response rate was 49.9%, so roughly half of the firms approached took part.
Two dates are coming up. The October inflation figures are due on November 5, and the BSP holds its policy meeting on December 17. Both will show whether firms' worries about prices are borne out and how the central bank responds.
What This Means For Builders
Cooler sentiment can slow private building starts, as owners and developers wait to see where fuel, prices and the peso settle. But real estate development and industry expansion were among the brighter spots in this survey, so projects are not drying up. They may simply be scrutinized more closely for cost and schedule.
If you are a contractor, estimator or developer, this is a good time to firm up your numbers early. When inflation is expected to run above target, a wall system that cuts labor days and finishing work helps protect your budget. Here are the Blocktec facts relevant to that:
- AAC blocks are laid with thin-bed adhesive and finished with skimcoat, so there is no thick sand-cement plaster (walang palitada).
- A trained mason with a helper does about 10-12 m2 per 8-hour shift, and up to 20 m2 on straight runs.
- In Blocktec's cost comparison, the wall system showed savings of up to about 21% versus hollow blocks. Results depend on the project.
Those savings come from sample comparisons, not a guarantee, so check them against your own plans. Blocktec ships from hubs in Marikina, Subic and Cabuyao, Laguna, which can help you plan deliveries around your site.
Sources
- Philstar: Business optimism dips for year ahead (Nov 2, 2026)
- The Chronicle: Business gloom eases but optimism loses steam (Nov 1, 2026)
- BusinessWorld: Philippine firms' outlook turns less upbeat in September (Nov 1, 2026)
- BusinessMirror: Fuel costs, inflation, peso dampen biz mood–BES (Nov 2, 2026)
Planning a build while prices stay uncertain? Send your wall area or blueprints to sales@blocktec.ph or through blocktec.ph for a free AAC wall-system estimate.