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Overseas news
US non-farm payroll (NFP) jobs grew by only 57,000 in June, falling well below economists’ forecast of a 115,000 increase. Meanwhile, the unemployment rate dropped to 4.2% last month.
The latest NFP figures could hint that employers are cautious about hiring amid high inflation and expectations of interest rate hikes. It could also mean fewer Americans were actively working or seeking jobs.
The NFP report measures the number of workers in the US aside from those in farms, private households, proprietors, non-profit employees, and active military. It gives a good picture of the general job situation in that country.
Relatedly, the US dollar weakened as the jobs report changed market expectations on the US Federal Reserve’s (the Fed) interest rate decisions. Meanwhile, US stocks and Treasury yields were little changed.
Investors have been anticipating an interest rate hike, which helps manage inflation and tends to strengthen a currency. However, the June labor data shifted expectations on how soon a hike could happen.
Weakening job growth may affect monetary policy decisions since higher borrowing costs can slow business activity and may further impede the creation of new jobs.
Local developments
The national government’s (NG) outstanding debt climbed to a new record high of P18.55 trillion in May as authorities borrowed more from domestic sources to support financing needs.
New domestic issuances of debt securities (like Treasury bills and bonds) drove the increase, though the rise was partially held back by a stronger peso. Outstanding debt is expected to hit P19.06 trillion by the end of 2026.
Additionally, the Philippine Stock Exchange index (PSEi) rose to the 6,100-level. Investors grew optimistic after the Philippines reached its long-standing goal of attaining upper-middle-income status.
A country’s income grouping is determined by its gross national income (GNI) per capita. There are 4 classifications: low, lower-middle, upper-middle, and high income. In general, the higher the grouping, the better the country’s condition.
Today’s news is mixed and shows no strong hints of major changes happening right away. A wait-and-see approach may be appropriate as you keep track of further developments.
