Daily Market Report - 02/03/2016
The UK manufacturing sector is getting closer to contraction: a score of 50.8 points the worst in three years, reflects very slow growth, much worse than the expected slide from 52.9 to 52.2. The survey showed demand at home slowed while export orders fell to their weakest since the turnaround began in 2013. Britain is not alone: slowdowns have been seen also in China, the US and the euro-zone.
The pound is still struggling with the chances of an exit from the European Union. The “Brexit” is now seen as a threat not only to the UK but also to Europe and the whole world, according to the G-20 Summit.
The US manufacturing sector contracted for a fifth consecutive month in February a score of 49.5 points in the ISM Manufacturing PMI was released yesterday, despite this being in negative territory, it was better than the expected 48.5 and previous 48.2. New orders are holding steady at higher levels, in another dose of good news for the economy after growth slowed in the fourth quarter.
Another report was released yesterday showing construction spending scaling a more than 8 year high in January, adding to upbeat data on consumer spending, the labour market, industrial production and durable goods orders, suggesting the economic growth has picked up this quarter.
Unemployment in the Eurozone fell for a third consecutive month in January, dropping to its lowest rate since August 2011. Eurostat said the jobless rate in the 19-country Eurozone declined to 10.3% in January from 10.4% in December. The number of people unemployed in the Eurozone fell by 105,000 to 16.65 million. The Eurozone’s jobless rate hit a high of 12.1% during the first half of 2013. In the 28 member European Union the unemployment rate fell to 8.9%. That was down from 9% in December and the lowest rate recorded since May 2009. The lowest unemployment rate in the Eurozone was in Germany at 4.3%, while the highest rates were in Spain, at 20.5%, and Greece, at 24.6%.
09:30 – GBP: Construction PMI is forecast to increase
13:30 – USD: ADP non farm employment change is forecast to fall to 185k
15:35 – USD : Crude oil inventories are forecast to drop to 2.5m