The monthly ADP Employer Services survey shows that US employment fell by 10,000 during the month of August, the first monthly job loss since January. This flies in the face of a survey of economists that forecast a gain of 15,000 jobs.
“The labor market is really in peril as businesses are just being very cautious,” said David Semmens, an economist at Standard Chartered Bank in New York, the only economist surveyed to accurately forecast the loss in private jobs. Today’s figures “will drag down expectations for the Friday payrolls report. The stability surrounding the recovery is declining.”
Source: Bloomberg
For the first time in four months, China’s Purchasing Manager Index (PMI) recorded an increase rising to 51.7 in August from 51.2 in July. A number above 50 on the index indicates an increase in activity.
The latest result will ease concern that growth is waning in China which is seen as a vital component in leading the global economy to recovery.
Source: BBC News
Meeting minutes from the US Federal Reserve’s August meeting released yesterday indicate that the Bank is prepared to buy more US debt if the economy were to worsen “appreciably”. The minutes suggest that the Central Bank favors the purchase of government bonds but would buy additional mortgage debt if necessary to protect the credit market.
Source: BBC News
