Manufacturing PPI posts 5th mo of decline in May By Cai U. Ordinario @caiordinario
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THE WORLD | A7
UKRAINE TAPS PRISON INMATES TO BOLSTER DEPLETED RANKS IN WAR AGAINST RUSSIA
HE Producer Price Index (PPI) for the manufacturing sector posted its fifth consecutive month of decline in May, according to the latest data from the Philippine Statistics Authority (PSA). The PSA said the PPI posted a faster annual decline of 0.8 percent in May 2024 from a year-onyear decrease of 0.6 percent in April 2024. The data, obtained from the Producer Price Survey (PPS), also showed the decline in May was a reversal from the 2.2-percent
growth in May 2023. “This brings the average annual growth rate of PPI from January to May 2024 to negative 0.9 percent,” PSA said. PSA said the decline was mainly caused by the slowdown in the PPI of the manufacture of computer, electronic and optical products industry division at 1.9 percent in May 2024 from 4 percent in April 2024. The data showed the manufacture of computer, electronic and optical products contributed 75.3 percent to the downtrend in the annual rate of PPI for manufacturing in May 2024. “Among the 22 industry divi-
sions for manufacturing, [the] manufacture of computer, electronic and optical products industry division has the second highest weight in the computation of PPI,” PSA added. Other main contributors to the faster annual decline of PPI in May 2024 were the slowdown in the annual increase of manufacture of beverages at 3.4 percent in May 2024 from the 4.1-percent annual increment in April 2024. The data also showed the faster decline in the annual rate of manufacture of other non-metallic mineral products at 2.6 percent during the period from 1.8 percent annual decrease in April 2024.
“Of the remaining 19 industry divisions, 10 industry divisions exhibited annual decreases during the period, while nine industry divisions registered annual increases during the month,” PSA added. On a month-on-month basis, the PSA said the PPI for manufacturing registered a slower increase of 0.2 percent in May 2024 from a 0.5-percent increment in April 2024. The PPI also posted a 0.4-percent monthly increase in May 2023. The largest contributor to the slower increase in the monthly rate of PPI in May 2024 was the See “PPI,” A2
A broader look at today’s business www.businessmirror.com.ph
Wednesday, July 3, 2024 Vol. 19 No. 260
PALACE CLEARS P6.35-T PROPOSED NEP FOR 2025
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P25.00 nationwide | 3 sections 34 pages | 7 DAYS A WEEK
By Samuel P. Medenilla @sam_medenilla & Reine Juvierre S. Alberto @reine_alberto
NITIATIVES that will enhance the capability of the country’s students and labor force will get the lion’s share of the P6.352-trillion proposed national expenditures plan (NEP) for 2025, which President Ferdinand R. Marcos Jr. approved on Tuesday. See “NEP,” A2
NEW SCAM WAVE CAN BYPASS TRAD’L TELCO NETWORKS: PCTO
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HE Philippine Chamber of Telecommunications Operators (PCTO) on Tuesday issued a warning about a new wave of scam messages targeting mobile users through
methods that bypass traditional telco networks. PCTO President Froilan Castelo said the group is calling for See “PCTO,” A2
SUNSET ON FISHING? A fisherman navigates his boat through
a series of non-functional floating solar panels on Laguna Lake in Baras, Rizal, on Tuesday, July 2, 2024. The Laguna Lake Development Authority (LLDA) plans to install a 2,000-hectare floating solar power project in Laguna de Bay. This proposal has sparked opposition from hundreds of local fishermen, who fear the project will obstruct their fishing routes and damage their docks, threatening their livelihoods. NONOY LACZA
At least one rate cut ‘more likely’ this year–think tank
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BEAUTY AND THE RUINS After teasing spectators during a few days of rain and
clouds, Mount Mayon in Albay displays the breath-taking beauty that has captivated people around the world, amazed at how it keeps its perfect cone shape despite years of eruptions. Fittingly framing it in foreground is the Cagsawa Ruins, another tourist attraction in Bicol. TRIXZY LEIGH BONOTAN
HE decision to maintain key policy rates at 6.5 percent in the last meeting of the Monetary Board may be the last time the Bangko Sentral ng Pilipinas (BSP) leaves rates unchanged this year. Global Source Partners country analyst Diwa Guinigundo is certain that at least one rate cut is confirmed based on the forward guidance given by BSP Governor Eli M. Remolona Jr. Citi Philippines economist Nalin Chutchotitham, meanwhile, expects six more rate cuts in increments of 25 basis points (bps) to happen over the course of 12 months or between August 2024 and August 2025.
“One rate cut is therefore more likely, as the forward guidance has been quite confirmatory so far,” Guinigundo said. “A second reduction in November or December is, as usual, datadriven both in terms of actual and projected inflation rates in the next two years. The balance of risks would also be an important metric for the BSP,” he added. Chutchotitham, for her part, said the BSP may cut rates by 25 basis points in August, October and December in 2024 followed by February, May, and August in 2025. “In any case, we note the risk See “Think tank,” A2
PESO EXCHANGE RATES n US 58.5630 n JAPAN 0.3627 n UK 74.0939 n HK 7.4965 n CHINA 8.0573 n SINGAPORE 43.1467 n AUSTRALIA 38.9795 n EU 62.8967 n KOREA 0.0424 n SAUDI ARABIA 15.6101 Source:
BSP (2 July 2024)