<p><strong>GLOBAL: The US Personal Consumption Expenditures (PCE) price index held at 3.7% year-on-year in July,</strong> higher than the 3.6% consensus estimate. Rising service costs offset a decline in the price of goods.</p>

<p><strong>Market impact: The dollar gained on stronger-than-expected PCE inflation data, </strong>while stocks and Treasury yields held steady.</p>

<p><strong>Inflation will remain sticky as upside risks persist, </strong>including geopolitical energy shocks and tariff implementation.</p>

<p><strong>LOCAL: Moody’s Analytics downgraded its 2026 GDP growth forecast for the Philippines from 4% to 3%. </strong>This was largely driven by a contraction in public construction and investments.&nbsp;</p>

<p><strong>&nbsp;Market impact: The PSEi hit a two-month low amid growth concerns. </strong>The peso climbed on hopes for the reopening of the Strait of Hormuz.&nbsp;</p>

<p><strong>Metrobank forecasts GDP growth to stay below historical averages through 2027, </strong>constrained by subdued private spending and restrained investor confidence.</p>