The PMI data released just now indicated that activity in Britain’s construction industry expanded, albeit at a slower than expected pace for August, lifted by a sustained recovery in residential building activity. Going forward, investor focus will drift towards the nation’s dominant services sector, with the services PMI report scheduled for release tomorrow.Across the Atlantic, the ADP employment report due later today will provide an early look at hiring trends in the US labour market ahead of the key nonfarm payrolls print on Friday. Also, US factory orders data will draw some market attention. In Europe, today’s producer prices update will provide signs whether deflation risk is on the rise in the Euro region.
In a busy day for economic releases, the just released UK manufacturing PMI indicated that activity in the sector for August expanded at a slower than expected pace, showing signs of weakness in the third quarter. Separately, the number of mortgage approvals edged higher than market expectations for July, suggesting strong homebuyer confidence amid record low borrowing rates.The Euro has rallied against the majors today even after data showed that Euro zone’s factory growth eased last month, missing expectations of an unchanged reading. Across the Atlantic, investor focus will be on keynote ISM manufacturing survey for August, with markets anticipating slight weakness in the advance reading.
The just out revised GDP data confirmed that Britain’s economy expanded in line with preliminary estimates for the second quarter, buoyed by healthy growth in total business investments and private consumption. Moving ahead, Sterling investors will keep a tab on Mark Carney’s statement at the Jackson Hole Symposium tomorrow, to see if the BoE Chief offers any hints about the timing of a rate rise in the UK.Later today, the preliminary German consumer price inflation reading will offer further direction to the Euro against the majors. Across the Atlantic, personal consumption expenditure data, along with the revised Reuters/Michigan consumer morale survey, will attract attention among market participants in the latter half of the trading session.