<p><strong>GLOBAL: US nonfarm payrolls fell by 23,000 in July, </strong>driven largely by public sector losses, while the unemployment rate dipped to 4.1% as fewer Americans looked for work.&nbsp;</p>

<p><strong>Market impact: US stocks hit record highs as softer jobs data eased rate-hike concerns,</strong> pushing Treasury yields and the dollar lower.&nbsp;</p>

<p><strong>Near-term job growth is expected to normalize,</strong> with July's losses reflecting temporary seasonal declines in local government education jobs.&nbsp;</p>

<p><strong>LOCAL: The economy expanded by just 2.3% year-on-year in the second quarter of 2026,</strong> as elevated oil prices, higher inflation, and a sharp drop in public construction hampered growth.&nbsp;</p>

<p><strong>Market impact: The peso weakened after the release of softer-than-expected GDP growth data, </strong>while the PSEi advanced as investors engaged in bargain hunting.&nbsp;</p>

<p><strong>Metrobank projects that GDP growth will remain below historical averages. </strong>Consumption and investments will remain subdued, driven by geopolitical uncertainty, persistent domestic price pressures, and high borrowing costs.&nbsp;</p>