The just out survey report revealed that growth in Britain’s services sector which accounts for the largest proportion of the nation’s GDP moderated for the second straight month in August, primarily as a result of the slowest increase in new businesses since April 2013.In Europe, the final services PMI numbers from the Euro zone and most of its economies came above expectations for August. Later in the day, the ECB will meet to discuss its interest rate policy amid recent speculation that the bank is looking to expand its current QE programme. Across the Atlantic, jobless claims, trade data and reports on the nation’s service industry will be released today.
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.