German unemployment fell for August with the jobless rate at a record low of 6.1%. However, business sentiment is at a 4 year low following uncertainty surrounding Brexit.
German services industry has weakened more than expected in August to its lowest level in 3 years. At the same time, France, Italy & Spain enjoyed growth again.
Consumer prices for August in the Eurozone rose 0.2% vs the same time in 2015. Predictions were in the 0.3% region and the failure to reach this has some suggested that Brexit has now impacted the Eurozone with the economy faltering.
Eurozone business growth for August was the weakest it has been since the beginning of last year.
The IMF has recently warned Portugal is facing economic slowdown due to weak exports and low investment, along with the heft of corporate debt the economy is enduring. The IMF has said that the recovery Portugal enjoyed over the last 3 years was ‘consumption-based’ recovery. They believe growth will be just 1% for 2016.
US: The services sector slowed to a 6.5 year low in August diminishing expectations of a Fed rate rise later this year. Job growth also slowed in August and manufacturing also contracted. Non-manufacturing fell to 51.4 – its lowest level since February 2010.
US: many companies are expected to indicate sales growth for Q3 2016 in a very welcome move for the US which has had several declines in sales growth since Q1 2015. 9 sectors out of a possible 11 are expected to show growth, which is up from just 6 sectors reporting growth in Q2. According to the Financial Times, 67% of companies exceeded their earnings forecasts by 4%.
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