The US economy was boosted yesterday by a positive estimate for Fridays non-farm payrolls figure which indicated private sector employment increased by 230,000 jobs from September to October. That’s an increase from 213,000 in September, suggesting that America’s labour market improved again last month.
Also in the US, the ISM (or institute of supply management) non manufacturing services index fell from 58.6 in September to 57.1, lower than the expected 58 and falling to its lowest level since June, showing business conditions in the US non-manufacturing sector have declined. The other measure for the service sector is measured by the Markit index, which also showed the final services sector purchasing managers index for October came in at 57.1, down from 58.9 in the previous month.
In the UK, economists have warned that Britain’s economy is slowing down after the service sector showed its weakest growth in 17 months. Services companies such as banks, hotels and hairdressers which make up the bulk of Britain's private sector saw growth slip to the lowest level since May 2013, causing the pound to fall to a one-year low aginst the dollar.
MPs have warned that Rolls-Royce’s plan to cut 2,600 jobs could have a serious negative affect on the UK economy. And the retail sector is also having issues with a decline in sales, which is mainly being blamed on a warmer autumn than expected.
The eurozone’s service sector also released figures showing another tough month, with private sector activity only slightly rising.
France had a poor result with service sector activity contracting at a faster pace. Italy showed growth, but businesses are evidently continuing to cut jobs.
10:30 GBP: Industrial production figures YOY expected to go to 1.5% from 2.5%
13:00: GBP: BoE Interest rate decision expected to remain at 0.5%
13:00 GBP: BoE Asset purchase facility (NOV) expected to remain at £375B
13:45 EUR: ECB interest rate decision expected to remain at 0.05%
14:30 EUR: ECB monetary policy press conference
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