This morning stocks are trying to recover from last week’s sharp losses, following Asian markets higher. Investors are digesting this morning PMI releases and are looking ahead to the Jackson Hole conference later this week when Fed Chairman Powell may detail the timing of the tapering of the US bond-buying programme.
UK flash composite PMI data published this morning from IHS Markit was lower for the third consecutive month, falling to 55.3 (from 59.2 in July) which is its lowest since February below forecasts. IHS Markit’s Chief Business Economist, Chris Williamson, wrote that the economy “continues to expand at a pace slightly above the pre-pandemic average, there are clear signs of the recovery losing momentum in the third quarter”.
The Eurozone flash Composite PMI came in at 59.5, down slightly from a 15-year high of 60.2 in July. Still, the reading pointed to one of the strongest rates of growth over the past two decades although supply chain delays persisted. Service sector growth exceeded that of manufacturing for the first time since the pandemic, buoyed by the further reopening of the economy.
Chris Williamson, wrote: “The eurozone’s economic recovery retained impressive momentum in August.”
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