Overseas news
The US trade deficit hit $122.7 billion in February, a 6.1% decrease from a record $130.7 billion in January. A deficit is what happens when a country imports more than it exports in a certain period.
However, imports remained high as businesses stocked up early to avoid potential tariff increases. This week, President Donald Trump announced higher tariffs for most US trade partners.
Meanwhile, the US services sector slowed in March to its weakest pace in 9 months, likely due to uncertainty surrounding trade policies.
The decline was seen in the Institute of Supply Management’s (ISM) non-manufacturing purchasing managers’ index (PMI), which fell to 50.8.
The services industry makes up more than two-thirds of the US economy. The 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).
Local developments
The Philippine Statistics Authority (PSA) said wholesale goods inflation reached 2.9% year-on-year in February. It is unchanged from the January rate but was slightly higher than last year’s YoY figure.
Wholesale inflation tracks changes in the Wholesale Price Index (WPI). This covers the prices of goods before they reach consumers.
Additionally, the PSA revised the 2024 economic growth rate to 5.7% from the initial 5.6% to align with global reporting standards. This growth surpassed the 5.5% in 2023 and was the highest since 2022, but still fell below the official target of 6 to 6.5 percent.
Economic growth is measured through a country’s gross domestic product (GDP), which is the value of goods and services produced in a certain period. It gives an idea of an economy’s size and how it’s performing.
Meanwhile, infrastructure spending fell by 19.8% year-on-year to P146.7 billion in December 2024, said the Department of Budget and Management (DBM).
This drop was due to high disbursements in 2023 and ongoing processing of payments for government agencies’ projects in late 2024.
Investors may adopt a wait-and-see approach as they anticipate the effects of the newly announced US tariffs. You might want to do the same and continue following your strategy if it still works for you.
