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Overseas news
US manufacturing activity likely declined for the 8th straight month in October as US tariffs continued to affect growth.
This was indicated by the US Manufacturing Purchasing Managers’ Index (PMI), which dropped to 48.7 in October from 49.1 in September.
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).
High tariffs can make imported goods more expensive. They can affect not only consumers but also businesses and manufacturers that import materials.
Local developments
Locally, the manufacturing PMI rose to 50.1 in October. This shows an improvement from 49.9 in September, though contractions were still seen in new orders and production.
Meanwhile, the Philippine Stock Exchange index (PSEi) fell by 1.71% on Monday to hit the 5,800 level. This happened amid worries of a large slowdown in economic growth in the 3rd quarter of 2025.
The PSEi typically reflects the state of the local stock market and may hint at investors’ outlook for the immediate future.
Relatedly, Economy Secretary Arsenio M. Balicasan said the Philippines’ industry sector may have slumped to its lowest level in years in Q3 2025, hampering overall economic growth. This sector includes manufacturing and construction.
He also cited recent natural disasters and the slowdown in government spending as possible contributors to the anticipated decline in gross domestic product (GDP) growth.
Additionally, the peso slightly rose against the US dollar on Monday as investors remained cautious ahead of the release of local GDP and inflation data later this week.
Investors monitor key economic data such as GDP and inflation figures to gauge the direction the markets might take.
With much uncertainty in the latest news, it may be best to avoid making big changes to your portfolio and stay liquid for now.
