US flash PMI results paint picture of slowing economy and falling prices

The survey data point to sustained steady expansion of the US economy at the end of the third quarter, but various warning lights are now flashing brighter, meaning growth may continue to weaken in coming months.

Japan flash manufacturing PMI signals falling exports, employment and prices

A renewed weakening of growth in the manufacturing economy adds to Japan’s woes, as evidence mounts that the various stimulus measures introduced under the umbrella of ‘Abenomics’ are failing to engender a sustainable economic upturn.

Prices fall as US manufacturing struggles in the slow lane

US manufacturing remained stuck in crawler gear in September, fighting an uphill battle against the stronger dollar, slumping demand in many export markets and reduced capital spending, especially in the energy sector.

Eurozone flash PMI rounds off best quarter for four years despite dip in September

The September PMI surveys indicate a further steady expansion of the eurozone economy, but there remains a worrying failure of growth to accelerate to a pace sufficient to generate either higher inflation or strong job creation.

Fed holds rates amid global growth worries

The Federal Reserve decided to keep interest rates on hold at its September meeting, staving off the first tightening of policy that the US will have seen since 2006. But this is likely to be merely a temporary postponement of the inevitable.

Weak retail sales add to signs of slowing UK economy

Sluggish growth of retail sales adds to the recent flow of economic data which point to a slowing in the UK economy.

UK pay growth hits six-year high amid tightest job market since March 2008

The long-awaited upturn in pay, which has been the missing element of the UK’s economic recovery, looks to be finally upon us, reviving the prospect of a rate hike by the end of the year.

Week Ahead: Tension builds ahead of Fed rate meeting

Markets will be on tenterhooks in the lead up to Thursday’s FOMC decision on US interest rates.

Skill shortages put brake on UK staff recruitment in August

Latest evidence from Markit’s recruitment industry survey highlighted a further slowdown in growth of staff appointments during August, amid shortages of suitably qualified candidates. The KPMG/REC Report on Jobs, published today, signalled that the number of staff placed in both permanent and temporary roles by recruitment consultancies increased at the weakest rates for 27 months.

US economy’s strength highlighted as unemployment rate hits 7½ year low

A mixed report on the health of the US labour market gives frustratingly little new insight into whether the Fed will start to hike rates. The report has been one of the most eagerly awaited so far this year, as it provides a last-minute steer to policymakers mulling over whether to hike interest rates at the FOMC’s 16-17 September meeting.

German PMI rises to five-month high and signals further GDP growth in Q3

Germany’s ‘all-sector’ PMI (a GDP-weighted average of the three surveys’ output measures) rose from July’s 53.6 to 54.7 in August, thereby signalling an acceleration in output growth in Germany’s private sector. The data point to further solid economic growth of 0.5% in the third quarter, after GDP rose 0.4% in the second quarter.

PMI surveys signal steepest economic downturn for 6½ years

China’s economy contracted at the steepest rate for six-and-a-half years in August, according to survey data. The Caixin China Composite PMI (which covers both manufacturing and services), compiled by Markit, indicated the largest drop in output since the height of the global financial crisis in February 2009. The ‘all sector’ output index slipped to 48.8 from 50.2 in July.

UK PMI surveys signal weakest growth for over two years

Even after allowing for the usual seasonal lull in business activity, August saw an unexpectedly sharp slowing in the pace of UK economic growth, which will add to current worries among dovish policymakers at the Bank of England.

Eurozone growth hits four-year high despite stalling French economy

The final Markit Eurozone PMI^® rose to 54.3 in August, up from 53.9 in July, and above the earlier flash estimate. The data signalled the fastest pace of expansion since May 2011.

Brazil’s economy slips into technical recession during Q2

Latest GDP data from IBGE showed that the Brazilian economy registered its worst quarterly performance since 2009 in quarter two, broadly in line with the Markit-compiled PMI data. Worryingly, the PMI suggests that this downturn extended into the third quarter. Output continues to contract across the manufacturing and service sectors, with the country’s economic malaise compounded by high interest rates, stubborn inflation and rising unemployment.

Regional weakness adds to easing of Vietnamese manufacturing growth

Growth of manufacturing output in Vietnam eased to the slowest for ten months in August, according to the latest Nikkei PMI survey, compiled by Markit. This continued a trend of generally weaker expansions seen since the survey’s record high in May. The slower rise in output was matched by new orders, as new work appears more difficult to secure than it was earlier in the year. This is particularly the case in international markets as companies reported a third successive monthly fall in new export orders.