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Overseas news
Japan’s government agencies are requesting a record JPY122.45 trillion, or around USD831 billion, in total spending for the next fiscal year. This marks the 3rd consecutive year of rising requests.
The budget requests include allocations for increasing social welfare costs, defense spending, and the costs of repaying national debt.
Meanwhile, Eurozone manufacturing activity expanded for the 1st time since mid-2022. The HCOB Eurozone Manufacturing Purchasing Managers’ Index (PMI) rose to 50.7 in August from 49.8 in July.
The growth was primarily driven by a surge in domestic demand and increased production.
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 economy is currently in a “sweet spot,” as the banking system remains strong and is complemented by manageable inflation. This was according to the Bangko Sentral ng Pilipinas (BSP).
BSP Governor Eli Remolona Jr. said at a Senate budget hearing that the BSP’s “measured approach” to lowering policy interest rates will help the economy grow without hiking inflation.
Additionally, Philippine manufacturing activity continued to expand in August, though growth hit its slowest pace in 2 months.
The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) eased to 50.8 in August from 50.9 in July.
Further, the Securities and Exchange Commission (SEC) plans to release revised rules for the Real Estate Investment Trust (REIT) Act by the 4th quarter of 2025.
The SEC aims to encourage more people to invest in REITs through the proposed changes, which include expanding the eligible assets for REITs, and lengthening the reinvestment period for sponsors.
REITs are public corporations that own and operate real estate properties. These properties generate income by collecting fees such as rent from customers.
Today’s news offers some bright spots, though there is little hint of what might happen in the long run. Keeping your strategy steady may be a good idea for now.
