Consumer spending in the Philippines is seen to recover in 2021 after posting subdued growth this year, according to a Fitch Group unit.

In a report on Friday, Fitch Solutions said it expected household spending to start rebounding next year by rising by 5.7 percent year-on-year, a big improvement from the 8-percent contraction it forecast this year.

It also projected the country’s main consumer spending categories to resume growing in 2021.

“Food and non-alcoholic-drink spending were prioritized in household budgets in 2020, so growth in spending on these items, while remaining positive, will be slightly lower in 2021,” the Fitch unit said.

It also forecast spending on food and non-alcoholic beverages to pick up by 5.3 percent in 2021.

“Our forecast for household spending over 2021 takes into account the economic impact of the Covid-19 pandemic on Filipino consumer spending and the government’s stimulus measures to support the economy,” Fitch Solutions explained.

These measures include Republic Act (RA) 11469, or the “Bayanihan to Heal as One Act,” which President Rodrigo Duterte signed on March 24 and expired on June 24; and RA 11494, or the Bayanihan to Recover as One Act,” which was signed on September 11.

Fitch Solutions has stressed the importance of the stimulus measures enacted this year, which have so far hit P595.6 billion or 3.1 percent of the country’s gross domestic product.

These fiscal packages, it said, aimed to support vulnerable individuals and groups, which includes cash programs for low-income households, tax deductions and wage subsidies.

Besides state support, the Fitch unit also said the dynamics behind its outlook were in line with its country risk team’s expectation that the Philippine economy would grow by 6.2 percent in 2021 from its projected 9.1-percent contraction this year.

This is seen to ease the unemployment rate in the country next year, which Fitch Solutions expects to hit 9 percent from its forecast of 16 percent for 2020.

Although the improved jobless rate is likely to support household incomes over the next year, it said consumer spending “will still face elevated pressure from higher than normal rates of unemployment.”

“We also note that there is a risk of increased underemployment. People returning to work, but working fewer hours than pre-Covid-19 (coronavirus disease 2019) [numbers], or taking lower paying jobs will put downside pressure on disposable incomes,” the Fitch unit said.

According to Fitch Solutions, its household spending projection takes into account risks that are highly likely to play out in the short term, such as the easing of government support.

Inflation also remains a risk for consumer spending over the next year, it said, adding that “with the recovery forecast for 2021, demand-side pressure will push up prices over 2021 to an average of 3.0 percent over the year.”

I thought I would just purchase a second air purifier, but I ended up planning my home for a smart upgrade when I visited the Cherry Home demo booth.

Two months ago, I wrote a review on the Woodpecker Plasma Air Purifier (Aug. 30, 2020). While it is quite efficient, it is too heavy and bulky to lug around. Some face-to-face meetings cannot be avoided. Having a second air purifier is what I needed, so that I could bring it along with me in a closed door meetings outside of my residence.

Strategically positioned at the entrance of the hardware store, the Cherry sales personnel were able to show me their array of Internet of Things products ranging from smart sockets to door sensors. Aside from the Air Purifiers, the smart pet feeder, smart pet fountain, smart adapters and wall sockets caught my attention. I thought the P5,700 for the Cherry UVC Air Purifier AP-02 is already affordable. It was only much later that I discovered it was only for P5,000 at the Cherry Home store on Lazada or Shopee. Weighing only 4.5 kilograms, this is the mid-range air purifier in its category. A replaceable filter and a UV-light provides a six-stage filtration with an effectivity range of up to 50 square meters (sqm). It is interesting how each filter works. The Pre-Filter traps large dust and human hair then the HEPA Filter (for allergens, pollens, dust mites, tobacco smoke and pet dander); Activated Carbon (for benzene, toluene, formaldehyde, ammonia and common odors); Photocatalyst Filter (for TVOCs, chemical and harmful gas); UVC (for airborne pollutants) and lastly the 6.60M negative ions (also for airborne pollutants).

With a Clean Air Delivery Rate (CADR) of 360 cubic meters per hour, it is just about the same as the 350 cubic meters per hour of the Woodpecker plasma purifier. Measuring the CADR was developed by the Association of Home Appliance Manufacturers and it indicates the volume of filtered air delivered by an air purifier. The higher the CADR number, the faster the unit filters the air. Filter replacement is just P800, which is more affordable than other brands. Changing the filter is best done after six months or when filter light turns on.

Two other models are available with the lower priced AP-01 having an effectivity range of 20 to 30 sqm and the higher-priced AP-300 for more than 60 sqm. Along with the use of best practices recommended by the Department of Health and World Health Organization, using filtration methods could be part of a plan to protect people in rooms that are not well-ventilated.

After checking that my Air Purifier was in order, I tested the two Cherry pet smart devices such as the Cherry Pet Smart Wi-Fi Feeder and the Cherry Pet Smart Fountain for my four pet kitties. The Cherry Home booth is able to demonstrate the features of these smart devices. Armed with a 3.7-liter food capacity, the Smart Feeder allows the pet owner to schedule the meal of their fur babies using a Cherry Home app. Having a scheduled time and the ability to monitor pets remotely from a smartphone prevents overfeeding. Talking with your pets is possible with the 720p front camera with a distance range of 20 meters and built-in speakers. My cats who love flowing water from the faucet would enjoy this Cherry Pet Smart Fountain. Just like the feeder, this two-liter water dispenser could be managed via Cherry Home app. It even comes with a UV light and filter with a 99.7-percent sterilization rate.

Controlling every device at home is possible with their smart adapter, smart wall switch and smart wall sockets including the smart extension cord. Compatible with Google Home and the Amazon Alexa, one could control the connected devices through voice aside from the app. The smart multi-color bulb would be a nice touch to the smart switches. For the security conscious homeowner, the smart security camera, smart entrance lock, smart video doorbell, and smart security sensor might prove to be useful.

With this lineup of smart home devices, my home would soon get smarter but first one device at a time.

Bureau of Internal Revenue (BIR) Commissioner Caesar Dulat said his agency welcomes its inclusion in the anti-corruption investigation to be conducted by the Department of Justice (DoJ).

“It (anti-graft probe) is a welcome move as it will assist us with our continuing effort to rid BIR of the remaining ‘bad eggs,’ the officials and employees and examiners who still continue with their corrupt practices,” Dulay was quoted as saying in a statement released by the tax bureau on Thursday.

He added that the BIR will fully cooperate with the probe. Dulay also said some people manning the agency could still be prone to corruption, and that was where Justice investigators could come in and help.

In a taped speech aired on Tuesday, President Rodrigo Duterte ordered the DoJ to look into the alleged corruption in all government agencies, starting with the Philippine Health Insurance Corp., Bureau of Customs, BIR, Department Public Works and Highways, and Land Registration Authority.

Going forward, the tax agency said it “continues to collect and hit by sheer team effort” its adjusted revenue goal despite the coronavirus disease 2019 pandemic crisis’ impact to taxpayers.

The BIR was tasked to collect P1.686 trillion in revenue this year, a downward adjustment from the earlier target of P1.744 trillion.

In January to September, the tax bureau’s cumulative collection of P1.444 trillion posted a 9.91- percent reduction from last year’s performance, but was 10.19-percent wider than the revised program of P1.310 trillion set for the nine-month period.

In a taped speech aired on Tuesday, President Rodrigo Duterte ordered the DoJ to look into the alleged corruption in all government agencies, starting with the Philippine Health Insurance Corp., Bureau of Customs, BIR, Department Public Works and Highways, and Land Registration Authority.

Going forward, the tax agency said it “continues to collect and hit by sheer team effort” its adjusted revenue goal despite the coronavirus disease 2019 pandemic crisis’ impact to taxpayers.

The BIR was tasked to collect P1.686 trillion in revenue this year, a downward adjustment from the earlier target of P1.744 trillion.

In January to September, the tax bureau’s cumulative collection of P1.444 trillion posted a 9.91- percent reduction from last year’s performance, but was 10.19-percent wider than the revised program of P1.310 trillion set for the nine-month period.

The stock market snapped its three-day losing streak on Friday on the back of Wall Street’s gains and as the United States economy posted surprising growth in the third quarter.

The benchmark Philippine Stock Exchange index (PSEi) climbed by 1.19 percent or 74.61 points to end at 6,324 while the wider All Shares gained 0.71 percent or 26.49 points to close at 3,779.57.

Philstocks Financial Inc. research associate Claire Alviar said the bourse took its cue from the rally in US markets the night before as investors hunted for bargains.

The Dow Jones, S&P 500 and Nasdaq rose by 0.52 percent, 1.19 percent and 1.64 percent, respectively.

News of the world’s largest economy growing by a better-than-expected 33.1 percent in July to September — from a 31.4 percent drop in the second quarter — boosted sentiment, which spilled into local stocks, she added.

According to Alviar, hopeful investors are still monitoring the country’s economic recovery, as well as the release of companies’ earnings results for the third quarter.

Regina Capital Development Corp. Managing Director Luis Limlingan also attributed the main index’s positive performance to the US gross domestic product data, which “showed a
rebound in growth after the recession caused by the coronavirus pandemic.”

“Weekly jobless claims also came in at [a below-than-expected rate and] helped overall sentiment,” he said.

Most local sectors closed in the green, with mining and oil on top at 2.12 percent. Only services slipped, at 0.24 percent.

Total volume turnover was at 2.38 billion shares, valued at P7.3 billion.

Advancers outpaced decliners, 135 to 81, while 37 securities were unchanged.

Bureau of Internal Revenue (BIR) Commissioner Caesar Dulat said his agency welcomes its inclusion in the anti-corruption investigation to be conducted by the Department of Justice (DoJ).

“It (anti-graft probe) is a welcome move as it will assist us with our continuing effort to rid BIR of the remaining ‘bad eggs,’ the officials and employees and examiners who still continue with their corrupt practices,” Dulay was quoted as saying in a statement released by the tax bureau on Thursday.

He added that the BIR will fully cooperate with the probe. Dulay also said some people manning the agency could still be prone to corruption, and that was where Justice investigators could come in and help.

The country’s banks expect stricter credit rules on loans to businesses and individual borrowers in the fourth quarter, according to the Bangko Sentral ng Pilipinas (BSP).

Results of the Third Quarter 2020 Senior Bank Loan Officers’ Survey indicated a net tightening of overall credit standards for loans to enterprises and households for October to December using the diffusion index (DI) approach.

Lara Romina Ganapin, acting deputy director of rthe central bank’s Department of Economic Research, said in a briefing on Thursday that the anticipated tighter standards were “on the back of a more uncertain economic outlook, along with [the] expected deterioration in the borrowers’ profiles and profitability of banks’ portfolio, including banks’ lower tolerance for risk.”

In terms of loan demand, results based on the DI approach suggested expectations of a net increase in overall demand for business loans. These are associated largely with corporate clients’ higher working capital requirements, an increase in customer inventory financing needs, a decline in clients’ internally generated funds, and lack of other sources of funds.

DI-based results for loans extended to households, meanwhile, showed expectations of a net decline in overall demand, including housing, automobile and personal/salary loans.
“The expected net decrease in demand for housing, auto and personal/salary loans was attributed by respondent banks largely to lower household consumption and housing investment,” the survey said.

Third-quarter results

In the third quarter, lenders tightened their credit rules on loans extended to companies and individual borrowers, which they attributed to, among other factors, firms’ less favorable economic outlook, deterioration in the profitability of banks’ portfolio and profiles of borrowers, and reduced tolerance for risk.

These same factors, they said, also contributed to the overall tightening of credit standards for loans to households.

Bangko Sentral Governor Benjamin Diokno said the continued reopening of the economy should incrementally boost loan demand in the next quarters as the capital requirements of businesses increase in anticipation of the economy’s recovery.

“The recent easing [of lockdown] measures [imposed] since March and restoration of economic activity would allow [the] more effective transmission of monetary policy to the wider economy,” he said.

According to him, central bank is confident in the soundness and resilience of the banking sector, as capital adequacy ratios have stayed above the prescribed standards.

The Bangko Sentral ng Pilipinas (BSP) said on Friday that the country’s headline inflation likely remained steady at 2.3 percent on higher power, oil and food prices.

In a statement, BSP Governor Benjamin Diokno said October’s point inflation estimate was still within the 1.9-to-2.7-percent forecast range of the central bank’s Department of Economic Research.

The projection matched the 2.3-percent consumer price growth in September, but was faster than the 0.8-percent in October 2019.

The Philippine Statistics Authority (PSA) will release official October inflation data on November 5.

“Higher electricity rates in Meralco (Manila Electric Co.)-serviced areas, increases in LPG (liquefied petroleum gas) and kerosene prices, and the impact of weather disturbances on selected food items contributed to upward price pressures for the month,” Diokno said.

Meralco raised its per kilowatt-hour (kWh) rate for https://atozmarkets.com/brokers/deltamarket/ consuming 200 kWh monthly by P0.1212 this month, while oil companies increased LPG prices by P1 — about P11 per 11-kg cylinder — on October 1.

“These could be partly offset by lower prices for gasoline, diesel and rice, as well as downward adjustments in the water rates of Manila Water- and Maynilad-serviced areas,” Diokno said.

Local oil companies decreased the price of diesel by 25 centavos per liter on Tuesday.

Latest PSA data show that rice prices declined in the first week of October, with the average retail price of regular milled rice dropping to P37.04 per kilogram from P37.25 per kilogram the week before.

Earlier, Manila Water Co. Inc. and Maynilad Water Services Inc. announced lower water rates for the fourth quarter.

“Looking ahead, the BSP will remain watchful of economic and financial developments to ensure that its primary mandate of price stability conducive to balanced and sustainable economic growth is achieved,” Diokno said.

The forecast comes a day after the central bank chief said at a briefing that the latest baseline projections indicated that consumer price growth was likely to remain within the 2-to-4-percent target range of the Bangko Sentral over the policy horizon.

Earlier, the BSP trimmed its inflation projection from 2.6 percent to 2.3 percent for 2020, from 3 percent to 2.8 percent for 2021, and from 3.1 percent to 3.0 percent in 2022.

“The overall balance of risks to the BSP’s inflation outlook also remains tilted to the downside for 2020 through 2022, as uncertainty surrounding the pandemic continues to dampen demand and prospects for a strong and immediate recovery,” Diokno said.

These risks to inflation and output underscore the need for continued policy support, he added.

THE us of a’s pinnacle plastics, packaging, and printing brands will collect for the twentieth Pack Print Plas (PPP) Philippines 2016 from October 6 to 8 on the SMX Convention Center Manila, SM Mall of Asia Complex in Pasay City.

“We are extra than grateful for achieving this milestone for PPP,” said Jing Lagandaon, COO of Global-Link MP, the event organizer.

“It become one of the first trade suggests we released while we started and it’s interesting for us not just to look how an awful lot it has grown but also to share that with exhibitors and site visitors. We look ahead to establishing the show on October 6,” Lagandaon said.

The selection, in our view, during that point in our pleading filed, is we said that the choice become overly biased for the additional series of tens of billions of pesos but not noted the legality of the provisions of the provider agreement as well as the fairness and the sanctity of the settlement among the two parties,” he said.

Tenazas careworn that the COA decision, “if no longer reconsidered and set aside, will motive irreparable harm to the usa’s lengthy-term hobby as it will further erode the confidence of foreign petroleum industry traders in the stability and truth of our guidelines and rules.”

The DOE professional stated the corporation’s legal function is also anchored below PD 1459, Section 1 (a), which “presents that the proportion of the government consisting of all taxes shall no longer be much less than 60 percentage of the difference between the gross profits and the sum of the running prices and such allowances which include the secretary of Energy can also deem right to furnish.”

“So the law almost gives that the 60 percent proportion of the government include all taxes out of the internet earnings of the assignment,” he stated.

Tenazas said COA’s selection “actually misconstrued, misapplied, and in the end, left out Section 18 (b) of PD 87 and Section 1 (a) of PD 1459, which we already discussed in advance.”

It also has criminal basis beneath Section 18 (b) of PD 87, which states that: “Provided, finally,” to quote: “That in no case shall the annual net sales proportion of the authorities, which include all taxes paid through or on behalf of the contractor, be less than 60 percentage of the difference among the gross income and the sum of the operating cost and Filipino participation incentive.”

“So it’s far very clear in the law that the 60 percentage share of the authorities may also consist of all income paid by way of the contractor. Considering that the contractor is exempt from all taxes except profits tax, the taxes that [are] cited under Section 18 of the law, PD 87, refers to income tax,” Tenezas said.