Events that marked the week:
On Monday Chicago PMI figures were released.The Chicago Business Barometer held on to most of July’s gain, falling just a fraction to 54.4 in August from 54.7 in July. No change was anticipated. While below the highs seen towards the end of last year, it’s still consistent with a bounceback in activity in the third quarter following recent weaker growth. A slight easing in both Production and New Orders prompted the latest decline in the Barometer, with both paring some of the large gains seen in July that had left them at the highest level since January.
Tuesday's session brought Manufacturing PMI figures.The August PMI registered 51.1 percent, a decrease of 1.6 percentage points from the July reading of 52.7 percent. No change was anticipated. Comments from the panel reflect a mix of modest to strong growth depending upon the specific industry, the positive impact of lower raw materials prices, but also a continuing concern over export growth.
In the Wednesday's US session ADP job figures were released. Private sector employment increased by 190,000 jobs from July to August. Analysts were forecasting increase by 204,000. "The job growth numbers for August improved slightly from July,” said Carlos Rodriguez, president and chief executive officer of ADP. “The employment gains for the month are in line with the year to date average.”
On Thursday Unemployment Claims and Trade Balance figures were released.In the week ending August 29, the advance figure for seasonally adjusted initial claims was 282,000, an increase of 12,000 from the previous week's revised level. Analysts were anticipating smaller increase to 273,000. The previous week's level was revised down by 1,000 from 271,000 to 270,000. The 4-week moving average was 275,500, an increase of 3,250 from the previous week's revised average. The previous week's average was revised down by 250 from 272,500 to 272,250.
Separate report showed that the goods and services deficit was $41.9 billion in July, down $3.3 billion from $45.2 billion in June, revised. July exports were $188.5 billion, $0.8 billion more than June exports. July imports were $230.4 billion, $2.5 billion less than June imports. The July decrease in the goods and services deficit reflected a decrease in the goods deficit of $3.4 billion to $61.4 billion and a decrease in the services surplus of less than $0.1 billion to $19.6 billion.
Friday's US session was marked by NFP report. Employers added 173,000 workers in August latest Non-farm payroll report showed. Analysts were predicting increase by 217,000. The gain in payrolls, while less than forecast, followed advances in July and June that were stronger than previously reported. Average hourly earnings climbed more than forecast and workers put in a longer workweek, the report also showed. Unemployment Rate fell to 5.1%, the lowest since April 2008 and a level that the Federal Reserve considers to be full employment, thus beating forecasts on fall to 5.2%. Persistent hiring indicates employers were upbeat about America’s demand prospects leading up to mounting concerns of further deterioration in emerging economies.
This week markets will be looking at:
JOLTS Job Openings (Wednesday 16:00)
Unemployment Claims (Thursday 14:30)
PPI (Friday 14:30)
Prelim UoM Consumer Sentiment (Friday 16:00)
