Manufacturing Output Contracts Across Multiple Countries in July Amid Price Eases

The United States is set to release its August Producer Price Index (PPI) showing inflation steady at 3.3% year-over-year, with core PPI expected to ease slightly. Despite this, the Federal Reserve is widely anticipated to cut interest rates in September, potentially by 50 basis points, reflecting tepid employment data and inflation pressures. In Europe, Dutch manufacturing output fell 1.4% in July, with nearly half of industrial sectors contracting, while German manufacturers reported mixed results with output rising year over year but showing recent negativity in sentiment. The Philippines experienced a decline in factory prices by 0.3% in July, marking the third consecutive month of falling producer prices amid weather disruptions and high base effects, with manufacturing output also slowing. Trade tensions driven by the United States' reciprocal tariffs have contributed to a cautious production stance in the Philippines, impacting sectors such as food, electronics, and transport equipment. Despite these challenges, increased sales and a slight rise in factory capacity utilization suggest some resilience in the Philippine manufacturing sector.