(Week of 18th - 22th) September 2023
(Week of 18th - 22th) September 2023
19 September 2023
Tuesday
Australia is set to unveil its Monetary Policy Meeting Minutes on September 19, 2023, while Canada will simultaneously release its Consumer Price Index (CPI) data.
AUD- Monetary Policy Meeting Minutes
The Monetary Policy Meeting Minutes serve as a documented record of the central bank's monetary policy committee discussions and decisions. Usually released a few weeks after the meeting, these minutes offer valuable insights into the committee's perspectives on the economy and their outlook regarding monetary policy. The minutes typically encompass several key areas:
- Economic outlook, including recent economic data and the committee's assessment of associated risks.
- Monetary policy stance, involving the committee's target for the policy rate and considerations regarding the balance sheet.
- The committee's insights into how changes in the policy rate impact the economy, known as the transmission mechanism of monetary policy.
- Deliberations on the most suitable monetary policy approach, complete with arguments for and against various options.
The minutes of the Monetary Policy Meeting are scheduled for release on Tuesday, September 19, 2023, at 02:30 AM GMT+1.
CAD – CPI m/m
Traders pay close attention to consumer prices because they constitute a significant portion of the overall inflation rate. Inflation holds great importance in the context of currency valuation because when prices start to rise, central banks often respond by increasing interest rates in line with their commitment to managing and controlling inflation.
In July 2023, Canada witnessed a notable uptick in consumer prices, with a 0.6% increase, a substantial jump from the 0.1% gain seen in June. This surpassed market predictions of a 0.3% increase and can be predominantly attributed to the elevated monthly costs associated with travel tours. Notably, July, being a peak travel season, played a significant role in driving these price hikes.
The forecast for the Canadian CPI m/m is reading another increase of 0.6% after the month of July 2023.
CAD – Median CPI
In July 2023, Canada's CPI Median experienced its third consecutive monthly ascent, registering a year-on-year (yoy) increase of 3.7%. This aligns precisely with what market analysts had predicted and represents the most modest reading since January 2022.
The forecast for Canadian Median CPI y/y is reading an increase of 4%.
CAD - Trimmed CPI y/y
In July 2023, Canada's CPI Median experienced its third consecutive monthly ascent, registering a year-on-year (yoy) increase of 3.7%. This aligns precisely with what market analysts had predicted and represents the most modest reading since January 2022.
The forecast for Canadian Trimmed CPI y/y is reading an increase of 3.5%, compared to September 2022.
Make a note on your schedules! On Tuesday, September 19, 2023, at 1:30 PM GMT+1, keep an eye out for the release of Canada's CPI m/m, Median CPI y/y, and Trimmed CPI y/y data. It's a significant economic event approaching.
20 September 2023
Wednesday
On September 20, 2023, several significant announcements and events are scheduled to occur, including the UK releasing its CPI y/y, the US announcing the Federal Funds Rate, engaging in discussions on FOMC Economic Projections, issuing the FOMC Statement, hosting the FOMC Press Conference, and New Zealand releasing its GDP q/q.
GBP – CPI y/y
Traders closely monitor CPI (Consumer Price Index) because it constitutes a significant portion of the broader inflationary landscape. Inflation holds great significance for currency valuation, as an upward trend in prices prompts central banks to consider raising interest rates in adherence to their mandate of curbing inflation.
Based on the latest data released by the Office for National Statistics, the United Kingdom's annual Consumer Price Index (CPI) rose by 6.8% in July, indicating a slight deceleration from the 7.9% increase observed in June. This figure marked the lowest level recorded since February 2022 and was in line with market expectations of a 6.8% increase.
The forecast for the British CPI y/y is reading a 7.3% increase, compared to September 2022.
The upcoming British CPI y/y data is scheduled for release on Wednesday, September 20, 2023, at 07:00 AM GMT+1.
USD - Federal Funds Rate
Traders pay close attention to the Federal Funds rate because short-term interest rates play a central role in currency valuation. Most other indicators are primarily analyzed by traders to forecast future rate changes.
The Federal Reserve has implemented a 25 basis point increase in interest rates, bringing them to a range of 5.25% to 5.50%, marking their highest level since 2001. This move, the 11th rate hike since March 2022, aligns with market expectations. According to the FOMC statement, the labor market has exhibited significant strength, while inflation continues to remain elevated. The statement does not rule out the possibility of future rate hikes but does not suggest that they are imminent either. The Committee has stated its commitment to continually assess additional information and its implications for monetary policy. This rate hike aims to temper inflation, which has been persistently high, even reaching levels not seen in four decades.
However, it also carries the potential to decelerate economic growth. The Federal Reserve finds itself in a delicate balancing act, striving to curb inflation while steering clear of a recession.
The forecast for the US Federal Funds Rate is reading a steady 5.5%, keeping the interest rate at the current level.
Mark your calendars! The next announcement for the Federal Funds Rate is set for Wednesday, September 20, 2023, at 7:00 PM GMT+1.
USD – FOMC Economic Projections
The FOMC Economic Projections hold significant appeal for traders as they serve as the principal means through which the Federal Reserve conveys its economic and monetary forecasts to the investment community.
The FOMC Economic Projections report, initially introduced in April 2011, encompasses the Federal Open Market Committee's forecasts for inflation and economic growth spanning the upcoming two years. Of particular significance within this report is the detailed presentation of individual interest rate projections made by FOMC members.
The next release of FOMC Economic Projections is scheduled for Wednesday, September 20, 2023, at 7:00 PM GMT+1.
USD – FOMC Statement
Traders attach importance to the FOMC Statement because it serves as the chief channel through which the Federal Open Market Committee communicates its monetary policy decisions to investors. Within this statement lies the result of their votes on interest rates and various policy measures, accompanied by insights into the economic conditions guiding their choices. Most significantly, it delves into the economic outlook and provides hints regarding potential future decisions.
The FOMC Statement will cover several key topics:
- Economic Assessment: The FOMC will provide an assessment of the current state of the economy, including factors such as growth, employment, and inflation. This assessment helps set the context for their policy decisions.
- Inflation Discussion: They will address the impact of inflation on the economy, discussing whether it is running too hot or is at a manageable level. This analysis is crucial for determining the appropriate monetary policy response.
- Interest Rate Strategy: The statement will outline the FOMC's plans for interest rates. This could involve discussions about potential rate hikes as a tool to control inflation. They may also consider the pace and magnitude of rate adjustments.
- Balance Sheet Reduction: The FOMC will detail their approach to reducing their balance sheet, which represents the amount of money they have injected into the economy through various asset purchases. This reduction can have implications for the overall monetary stance.
- Balancing Act: Lastly, the statement will reflect the FOMC's delicate balancing act between addressing inflation concerns by raising interest rates and avoiding the risk of causing a recession by not raising rates too aggressively. This balance is essential to maintain economic stability.
The FOMC is scheduled to issue its statement on Wednesday, September 20, 2023, at 7:00 PM GMT+1.
USD - FOMC Press Conference
Traders show keen interest because it stands as one of the principal means through which the Federal Reserve communicates with investors regarding its monetary policy. This communication extends to a comprehensive analysis of the factors influencing the most recent interest rate and policy determinations. Furthermore, it offers commentary on economic conditions, including insights into future growth prospects and inflation. Most crucially, it offers valuable hints concerning the direction of future monetary policy.
The FOMC Press Conference is expected to discuss the economy, monetary policy, and the Fed's plans for the future. The Fed is likely to reiterate its commitment to bringing inflation down, but it is also mindful of the risks of raising rates too quickly and causing a recession. The Fed may provide some guidance on how many more rate hikes it is planning, and it may also discuss its plans for reducing its balance sheet.
The FOMC Press Conference is on the calendar for Wednesday, September 20, 2023, at 7:30 PM GMT+1.
NZD – GDP q/q
GDP q/q is of interest to traders because it serves as the most comprehensive indicator of economic activity and is the primary gauge of the economy's overall health.
In the recent announcement, it was disclosed that economic activity, as measured by gross domestic product (GDP), experienced a 0.1 percent decline in the first quarter of 2023, following a 0.7 percent contraction in the previous quarter of December 2022. However, there was a notable annual increase, with GDP rising by 2.9 percent in March 2023 compared to the same period in the prior year. Additionally, expenditure on GDP also saw a decrease of 0.2 percent in the March 2023 quarter, following a 0.9 percent decrease in the December 2022 quarter. Over the year ending March 2023, expenditure on GDP displayed a growth of 2.6 percent compared to the corresponding period in the previous year.
The forecast for New Zealand GPD q/q is reading a growth of 0.5%, compared to Q1 of 2023.
The upcoming GDP q/q data for New Zealand is scheduled for Wednesday, September 20, 2023, at 11:45 PM GMT+1.
21 September 2023
Thursday
On September 21, 2023, a series of significant market-moving events are scheduled to occur. Switzerland will release its SNB Monetary Policy Assessment and SNB Policy Rate, with a tentative SNB Press Conference. The United Kingdom will publish its Monetary Policy Summary, MPC Official Bank Rate Votes, and its Official Bank Rate. Meanwhile, the United States is set to unveil its unemployment claims data. These announcements are anticipated to have a notable impact on financial markets.
CHF - SNB Monetary Policy Assessment
Traders find it crucial because it serves as the primary means through which the SNB Governing Board communicates with investors regarding monetary policy. This release includes their determinations on interest rates and provides insights into the economic factors influencing their decisions. Most significantly, it offers forecasts on the economic landscape and provides hints about potential future rate decisions.
The SNB Monetary Policy Assessment is a regular meeting of the Swiss National Bank's Governing Board to review the country's monetary policy. The meeting considers a number of factors, including the current state of the economy, inflation expectations, the stance of monetary policy in other countries, the risks to the economic outlook, the exchange rate of the Swiss franc, the level of international reserves, and the financial stability of the Swiss financial system. The Governing Board will weigh all of these factors carefully before making a decision on the appropriate monetary policy stance.
The SNB Monetary Policy Assessment is scheduled for release on Thursday, September 21, 2023, at 08:30 AM GMT+1.
CHF - SNB Policy Rate
Traders pay close attention because short-term interest rates play a pivotal role in currency valuation, with most other indicators being analyzed primarily to forecast future rate movements
In the earlier announcement, the SNB had tightened its monetary policy, increasing the SNB policy rate by 0.25 percentage points to reach 1.75%. This move was in response to the resurgence of inflationary pressures over the medium term. The potential for additional hikes in the SNB policy rate was left open as a means to ensure price stability in the medium term. To create the necessary monetary conditions, the SNB had also indicated its readiness to engage actively in the foreign exchange market when required. During this period, the primary focus had been on the sale of foreign currency.
The forecast for the Swiss Interest Rate is reading an increase to 2%.
Mark your calendars! The forthcoming announcement of the SNB Policy Rate is slated for Thursday, September 21, 2023, at 08:30 AM GMT+1. This event holds significance for financial markets and economic observers alike.
CHF - SNB Press Conference
Traders attach importance to it as one of the primary means through which the SNB Governing Board communicates with investors regarding monetary policy and the economic outlook.
The conference takes place twice a year, coinciding with rate announcements in June and December. It typically spans an hour and comprises two segments: the first involves reading prepared statements, followed by an open session for press questions. The unscripted responses to these questions often have the potential to trigger market volatility.
SNB Press Conference is scheduled to take place on Thursday, September 21, 2023, at 09:00 AM GMT+1.
GBP - Monetary Policy Summary
This is one of the MPC's key instruments for conveying monetary policy to investors. It encompasses the results of their interest rate and policy measure votes, coupled with insights into the economic factors shaping their decisions. Crucially, it delves into the economic forecast and provides hints about forthcoming votes.
The Monetary Policy Summary is scheduled for release on Thursday, September 21, 2023, at 12:00 PM GMT+1.
GBP - MPC Official Bank Rate Votes
The MPC meeting minutes from the Bank of England (BOE) include the recent interest rate votes of each MPC member. This breakdown offers valuable insights into any shifts in members' positions on interest rates and the proximity of the committee to potential rate adjustments in the future.
The vote is presented as 'X-X-X,' where the first number indicates those in favor of raising interest rates, the second number signifies those in favor of lowering rates, and the third indicates those who voted to maintain rates.
The MPC Official Bank Rate Votes will be disclosed on Thursday, September 21, 2023, at 12:00 PM GMT+1.
GBP - Official Bank Rate
Traders keep a close watch because short-term interest rates are the dominant factor in currency valuation, and they analyze various indicators primarily to forecast future rate movements.
On the 3rd of August 2023, the Bank of England raised the Bank Rate by 0.25 percentage points to 5.25%. The inflation target was set at 2%, while GDP growth stood at 0.2%. CPI inflation was anticipated to decrease to 5%. Wage growth indicated the presence of inflationary pressures. Additional tightening measures were considered possible to attain the 2% target.
The Forecast for the British Interest Rate is reading an increase to 5.5%, compared to the earlier 5.25%.
Mark your calendars! The highly anticipated announcement of the Official Bank Rate is on the schedule for Thursday, September 21, 2023, at 12:00 PM GMT+1. This event is of paramount importance to financial markets and economic stakeholders, and it will be closely monitored for its potential impact.
USD – Unemployment Claims
While typically seen as a lagging indicator, the unemployment rate holds significance as it serves as a crucial gauge of overall economic well-being due to its strong correlation with consumer spending. Additionally, it is a key factor considered by those responsible for shaping the nation's monetary policy.
In the week ending September 9, there were 220,000 initial claims for unemployment benefits, which marked an increase of 3,000 compared to the revised figure from the previous week. The 4-week moving average decreased by 5,000 to 224,500, with a revision in the previous week's average. The seasonally adjusted insured unemployment rate remained unchanged at 1.1 percent for the week ending September 2. There were 1,688,000 seasonally adjusted insured unemployment claims during that week, reflecting an increase of 4,000 from the revised figure of the previous week. The 4-week moving average for insured unemployment decreased to 1,697,000, with a revision in the previous week's average.
The forecast for the US Unemployment Claims is reading an increase to 222,000; meaning more Americans filing for unemployment benefits.
Mark your calendars! The eagerly awaited release of Unemployment Claims data is scheduled for Thursday, September 21, 2023, at 1:30 PM GMT+1. This event is of great significance to economists, analysts, and financial markets, and it will be closely monitored for its potential impact.
22 September 2023
Friday
On September 22, 2023, several high-impact news announcements are expected. Japan is scheduled to release its Monetary Policy Statement and BOJ Press Conference, with the latter being tentative. The UK will publish its Retail Sales m/m data, while France, Germany, the UK & the US will announce their respective Flash Manufacturing and Services PMI figures.
JPY - Monetary Policy Statement
Traders pay close attention because it serves as one of the primary means through which the BOJ communicates with investors regarding monetary policy. This release encompasses their decisions on asset purchases, provides commentary on the economic factors influencing their choices, and, significantly, presents economic forecasts while offering hints about future policy decisions.
The scheduling of the Monetary Policy Statement is yet to be confirmed.
JPY - BOJ Press Conference
Traders closely follow it because it is one of the primary channels through which the BOJ communicates its monetary policy stance to investors. This report delves into the factors influencing the most recent interest rate decision, provides insights into the overall economic outlook, inflation, and offers hints about potential future monetary policy directions.
The scheduling of the BOJ Press Conference is subject to confirmation.
GBP - Retail Sales m/m
Traders are keenly interested because it serves as the primary indicator of consumer spending, which plays a pivotal role in the majority of overall economic activity.
On August 18, 2023, retail sales in the United Kingdom saw a significant decline of 1.2% from the previous month in July 2023, which was worse than market expectations of a 0.5% decrease. This drop followed a downwardly revised 0.6% growth in June. Notably, it marked the first contraction in retail trade since March, attributed to adverse weather conditions and cost pressures impacting both food and non-food sales. Food trade contracted by 2.6%, reversing the 1.1% growth seen in June, with supermarkets reporting reduced clothing sales due to the wet weather. Non-food trade also decreased by 1.7%, and sales at household goods stores fell by 3.8% after a 0.4% rise the previous month. However, non-store retailing sales increased by 2.8%, likely influenced by promotional activities. Additionally, automotive fuel sales rebounded by 0.7% following a 0.6% decline in June. On a year-on-year basis, retail trade contracted by 3.2%, marking the 16th consecutive month of decline and the sharpest drop in three months, exceeding expectations of a 2.1% decrease.
The forecast for British Retail Sales m/m is reading another decrease of 0.7%.
The forthcoming release of British Retail Sales m/m is scheduled for Friday, September 22, 2023, at 07:00 AM GMT+1.
EUR - French Flash Manufacturing PMI
Traders closely track the Flash Manufacturing PMI because it serves as a pivotal leading indicator of economic well-being. This is due to the fact that businesses swiftly respond to market dynamics, and their purchasing managers possess some of the most up-to-date and pertinent insights into a company's perception of the overall economic landscape.
In August 2023, the S&P Global France Manufacturing PMI underwent a slight downward revision to 46, compared to the initial estimate of 46.4, although it remained higher than July's reading of 45.1. This marked the seventh consecutive month of contraction in factory activity, primarily driven by a sharp and accelerated decline in new orders amidst sluggish market conditions. Subsequently, both output levels and purchasing activity experienced solid declines, with the latter recording its quickest drop in over three years. Moreover, employment levels witnessed their most significant decline in over three years as companies sought to align staffing with reduced production requirements. On the pricing front, input costs continued to sharply decrease, driven by lower raw material and energy prices. The decline in output charges was the fastest since August 2016, reflecting efforts to maintain competitiveness. Looking ahead, French manufacturers expressed their highest level of pessimism since May 2020 due to concerns about the demand outlook.
The forecast for French Flash Manufacturing PMI is reading a slight increase to 46.4 points.
Make a note of it! The upcoming French Flash Manufacturing PMI is slated for announcement on Friday, September 22, 2023, at 08:15 AM GMT+1.
EUR – French Flash Services PMI
Traders pay close attention to this data because it serves as a leading indicator of economic health. Businesses are known to respond rapidly to market conditions, and their purchasing managers possess a real-time and highly pertinent perspective on the company's outlook for the economy.
In August 2023, the HCOB France Services PMI fell to 46 from the previous month's 47.1, falling well below both the initial estimate of 46.7 and market expectations of 47.5. This marked the third consecutive period of contraction in the French services sector, with the sharpest decline since February 2021. New orders had shrunk for four consecutive months, reaching their fastest decline since November 2020, as service providers attributed it to reduced demand due to budget constraints for businesses and households. Consequently, output had contracted more rapidly, despite a significant reduction in unfinished work. The capacity constraints in businesses led to a decrease in the rate of hiring, resulting in employment growth easing to its lowest level in nine months. Meanwhile, input inflation had moderated for six consecutive months, and increased competition had driven output charge inflation to its lowest point in two years. Despite these challenges, firms remained optimistic about growth in the next 12 months.
The forecast for French Flash Services PMI is reading an increase to 46.8 points.
Be prepared! The forthcoming French Flash Services PMI is scheduled for release on Friday, September 22, 2023, at 08:15 AM GMT+1.
EUR – German Flash Manufacturing PMI
The German Flash Manufacturing PMI announcement holds traders' attention as it serves as a key leading indicator for economic activity in Germany, the largest economy in Europe. This PMI gauge assesses the manufacturing sector's performance by surveying purchasing managers, with a reading below 50 signaling a contraction in the sector.
In August 2023, the HCOB Germany Manufacturing PMI was confirmed at 39.1, marking the second-lowest reading since May 2020 and firmly placing it in sub-50 contraction territory. Output had declined at the fastest rate since the initial COVID-19 shutdowns in the spring of 2020, while new orders saw the most significant drop in over three years. This decline was attributed to customer uncertainty, weakness in the construction sector, and a general reluctance for investment. Furthermore, new export orders had notably decreased due to reduced sales in China and across Europe.
Factory employment had experienced modest declines as companies were cautious about making substantial staff reductions. On the pricing front, both input costs and factory gate prices had decreased. Lastly, manufacturers maintained a pessimistic outlook regarding production prospects for the upcoming year.
The forecast for German Flash Manufacturing PMI is reading an increase to 40 points.
Mark your calendars! The upcoming release of the German Flash Manufacturing PMI is scheduled for Friday, September 22, 2023, at 08:30 AM GMT+1.
EUR - German Flash Services PMI
The significance of the German Flash Services PMI lies in its role as a forward-looking gauge for economic health. Businesses respond rapidly to market shifts, and their purchasing managers offer a real-time, highly relevant perspective on the company's economic outlook.
In August 2023, the HCOB Germany Services PMI was confirmed at 47.3, marking the first contraction in eight months and the most significant decline since November 2022. Businesses had reported a sustained decline in demand, primarily driven by economic uncertainty and robust inflationary pressures. Both input costs and output prices in the service sector had continued to increase at rates well above their long-term averages, with input costs even accelerating slightly compared to the previous month. Looking ahead, business expectations in the service sector had shown a slight improvement after reaching an eight-month low in July. However, overall confidence remained historically subdued, leading to a near-stall in job creation.
The forecast for the German Flash Services PMI is reading another decline to 46.5 points.
Don't forget to mark the date! The next German Flash Services PMI is slated for release on Friday, September 22, 2023, at 08:30 AM GMT+1.
GBP - Flash Manufacturing PMI
The Flash Manufacturing PMI serves as a pivotal gauge of economic well-being. Businesses are swift to respond to market dynamics, and their purchasing managers possess the most current and pertinent insights into the company's economic outlook, making it a crucial leading indicator.
In August 2023, the S&P Global/CIPS UK Manufacturing PMI was revised slightly higher to 43.0 from the initial estimate of 42.5. However, this reading remained below the July figure of 45.3, marking the lowest point since May 2020 and indicating a significant deterioration in operating conditions. The rate of output decline had accelerated to its sharpest level in a year, ranking among the fastest declines in the history of the survey. Moreover, both total new orders and new export business had contracted at rates not seen outside of the 2007-08 global financial crisis and the COVID-19 pandemic. Staffing levels had been reduced for the 11th consecutive month, and backlogs of work had seen their most substantial decrease since April 2020. On the pricing front, purchasing costs had experienced the most significant drop since January 2016, while selling prices had decreased marginally. Finally, business confidence had reached a four-month high, driven by hopes for a market resurgence.
The forecast for the British Flash Manufacturing PMI is reading a further decline to 42.4 points.
Take note! The forthcoming release of GBP Flash Manufacturing PM is scheduled for Friday, September 22, 2023, at 09:30 AM GMT+1.
GBP - Flash Services PMI
The Flash Services PMI serves as a crucial leading indicator of economic well-being, as businesses demonstrate agility in responding to market conditions, with their purchasing managers possessing the most up-to-date and pertinent insights into the company's perspective on the economy
In August 2023, the S&P Global/CIPS UK Services PMI was revised higher to 49.5 from the preliminary estimate of 48.7 but still indicated the first downturn in services activity since January. This decline was attributed to weakened business and consumer spending, coupled with the impact of higher borrowing costs on client demand. Lower output reflected a decrease in sales volumes, marked by a slight decline in new work for the first time since January. Additionally, a shortage of new projects to replace completed ones resulted in the fastest decline in backlogs in over three years. Subdued business conditions also restrained staff hiring, with the slowest rise in employment since March. Input price inflation was at its joint-lowest since May 2021, while prices charged by service providers saw their smallest increase in two years. Despite these challenges, service companies retained optimism about their growth prospects, although confidence levels were the lowest in seven months.
The forecast for the British Flash Services PMI is reading a decline to 48.6 points.
Mark your calendars! The highly anticipated release of British Flash Services PMI is on the horizon, scheduled for Friday, September 22, 2023, at 09:30 AM GMT+1. This event is of significant interest to market observers and investors.
USD - Flash Manufacturing PMI
The Flash Manufacturing PMI, a critical barometer of economic vitality, takes center stage as a pivotal indicator. It underscores the nimbleness of businesses in responding to market dynamics, with their purchasing managers serving as custodians of the most contemporaneous and pertinent perspectives on a company's economic outlook. This dynamic blend of real-time data and expert insight drives its significance in the economic landscape.
In August 2023, the S&P Global US Manufacturing PMI was revised upward to 47.9 from the preliminary figure of 47, but it still indicated a contraction compared to July's 49. This continued a trend that had been ongoing since November 2022, with only a brief period of stability noted in April. The most recent PMI reading aligned with the average observed during this timeframe. The sharper decline in new orders had led to a renewed contraction in output. Firms had also continued to reduce their backlog of work and stocks of finished goods. Nonetheless, manufacturers had increased employment to support anticipated workload growth, albeit at the slowest pace since January. Regarding pricing, average input costs had risen for the second consecutive month, and at a slightly quicker rate. These elevated costs had been passed on to customers, resulting in the fastest rate of output price increases seen in four months. However, when looking ahead, output expectations were the weakest in 2023 so far, suggesting a degree of caution among manufacturers.
The forecast for the US Flash Manufacturing PMI is reading an increase to 48.1 points.
Don't miss this! The next Flash Manufacturing PMI is scheduled for release on Friday, September 22, 2023, at 2:45 PM GMT+1. It's an important event for those following economic developments.
USD - Flash Services PMI
Traders closely monitor the Flash Services PMI due to its pivotal role as a leading indicator of economic well-being. This index captures the rapid responsiveness of businesses to evolving market conditions, with their purchasing managers serving as gatekeepers to the most up-to-the-minute and pertinent perspectives on a company's economic outlook. This blend of real-time data and expert insight underscores its significant relevance in the economic landscape, making it an essential focus for traders and investors alike.
In August 2023, the S&P Global US Services PMI was adjusted downward to 50.5 from the preliminary reading of 51, indicating the slowest growth in services activity within the current seven-month expansion sequence. This deceleration in output growth was primarily attributed to a renewed contraction in new business, with client demand being dampened by increased interest rates and elevated inflation. The decline in demand was mainly driven by subdued domestic demand, while new export orders continued to rise. Consequently, firms expanded their staffing levels at the slowest rate in nearly a year, as the evidence of spare capacity grew. On the inflation front, input prices increased at a steeper pace, mainly due to higher wage bills. However, firms were cautious about passing on the full extent of these cost increases to clients, resulting in a more moderate rise in selling prices. Nevertheless, there was an improvement in the level of confidence among businesses.
The forecast for the US Flash Services PMI is reading a slight decrease to 50.2 points.
Mark your calendars! The upcoming release of the Flash Services PMI is slated for Friday, September 22, 2023, at 2:45 PM GMT+1. This event holds substantial significance for financial markets and economic analysts and will be closely monitored for its potential impact.
Disclaimer: The market news provided herein is for informational purposes only and should not be considered as trading advice.
