The Philippine economy improved by growing 6.9% year-on-year in the first quarter of 2016, as consumption remained robust and other sectors of the economy improved from a year ago. Inflation reached a recent high, though prices remain low, and policy rates have not changed. Investors took a wait-and-see approach due to the general elections in May, but foreign investments did improve. Business expectations for the second quarter of 2016 increased due to optimism about consumer, election, and tourist spending, while consumer expectations were more pessimistic. The third quarter outlook is more sanguine due to seasonal factors and an expected uptick in price levels.