Overseas news
Expansion in US economic activity slowed in April, as seen in the S&P Global’s flash US Composite PMI Output Index, which tracks the manufacturing and services sectors.
The index dropped to a 16-month low of 51.2. PMI is an index that shows if market conditions are seen as expanding (index over 50), staying the same (index at 50), or contracting (index under 50).
The latest data reinforces fears of stagflation, which happens when economic growth is slowing but the inflation rate is still rising.
This can pose a challenge to policymakers like the US Federal Reserve (the Fed) as they must decide what to do to possibly boost the economy while keeping prices from rising too high.
Meanwhile, Asian shares were poised to open higher Friday. This is due to a rally in US stocks, powered by tech firm Alphabet Inc.’s solid earnings report and optimism about the Fed cutting interest rates sooner than expected.
Investors pay close attention to key rate decisions, since these can affect many aspects of finance, including investment performance.
Local developments
The Philippine Stock Exchange index (PSEi) ended a 3-day climb on Thursday. This happened as investors took profit and as trade tensions caused by US tariffs continued to weigh on the market.
Meanwhile, Budget Secretary Amenah Pangandaman expects a rebound in infrastructure spending in the next 2 months, following an expected dip in April due to the election ban.
Higher infrastructure spending may have positive effects on the economy both directly and indirectly. It can help create jobs and boost the spending power of workers as well as promote growth in industries and locations affected by the developments.
Additionally, the Philippines received $6.02 billion in financial assistance from the Asian Development Bank (ADB) in 2024, the 2nd biggest among the bank’s partner countries next to India with $7.26 billion.
The amount included loans, grants, and co-financing programs meant to support the government initiatives such as infrastructure projects.
Today’s news is mixed, and so it might be wise to remain cautious as you wait for more concrete updates.
