The UK manufacturing sector started the third quarter on a firm footing. Production and new orders both continued to rise at robust, above long-run average rates in July, encouraging further job creation. However, the pace of expansion at manufacturers cooled from the stellar growth spurt seen during the first half of the year. At 55.4 in July, down from 57.2 in June, the headline seasonally adjusted Purchasing Manager’s Index posted its lowest reading in one year, but nonetheless remained well above the survey average of 51.5. The PMI has now signalled an improvement in operating conditions throughout the past 17 months.
Employers in the U.S. added more than 200,000 jobs for a sixth straight month in July, the longest such period since 1997 and a sign of growing optimism about the economic outlook. The 209,000 advance followed a 298,000 gain in June that was stronger than previously reported. The median of economists called for a 230,000 increase.
The jobless rate climbed to 6.2 percent from 6.1 percent in June as more people entered the labour force. Wages and hours were unchanged from June.
Manufacturing expanded in July at the fastest pace in more than three years, showing factories will help power the economy after a second-quarter rebound, other data showed today. The Institute for Supply Management’s index increased to 57.1, the highest since April 2011, from 55.3 a month earlier. Readings above 50 indicate growth.
Federal Open Market Committee officials this week continued to pare monthly asset purchases as the job market strengthens and the threat of disinflation diminishes. Nonetheless, they said in a statement that “a range of labour-market indicators” have shown “significant underutilization of labor resources.”
09:30 BST - GBP- Construction PMI expected to increased to 62.6
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Daily Market Report - 04/08/2014