Next week’s economics: 3-7 October – Investors’ Chronicle – Investors Chronicle

by | Sep 29, 2022 | Financial

Last month, an unusual level of controversy surrounded the US services index releases: the ISM and the S&P Global purchasing managers’ index (PMI) were pointing in opposite directions. In all likelihood, this means one of them is wrong. A figure below 50 suggests the service sector is generally contracting, while a number above 50 suggests that it is expanding. The S&P Global US Services PMI registered 43.7 in August, while the Services ISM was a far more optimistic 56.9.Ian Shepherdson, chief economist at Pantheon Macroeconomics, argues that the fall in petrol prices is rapidly lifting spending power, and expects retailers can look forward to a “decent holiday” season as a result. He suggests that the divergence in the indices could be due to the S&P survey being conducted earlier in the month – this means good news may not have had time to filter through. New figures released on 5 October will be hotly anticipated.More PMIs to watch out for next week include US, Eurozone and CIPS UK manufacturing on Monday, followed by UK services on 5 October. The Eurozone services PMI will be released on Monday 5 October, followed by EU retail sales on Tuesday. The services index showed a mild contraction …

Article Attribution | Read More at Article Source

Share This