From Eurozone, yesterday, Spanish and Italian Services PMI data was published. The headline seasonally adjusted Spanish Services PMI posted 54.6 in January, in line with market forecasts, remaining well above the 50.0 no-change mark and thereby signalling a further sharp rise in activity during the month. Services output has now increased in each of the past 27 months, although the rate of expansion slowed again at the start of the year and was the weakest since December 2014. At 53.6 in January, down from December’s 69month high of 55.3, the headline Italian Markit/ADACI Business Activity Index showed a solid but slower rise in service sector output at the start of 2016. Analysts were expecting smaller decrease to 54.2. Growth in business activity has now been recorded for 11 months in a row.
In the US session ADP job figures and Non-Manufacturing PMI data was released.
Private sector employment increased by 205,000 jobs from December to January according to the January ADP National Employment Report. Analysts were forecasting increase by 193,000. "One of the main reasons for lower overall employment gains in January was the drop off in jobs added at the largest companies compared to December. These businesses are more sensitive to current economic conditions than small and mid-sized companies,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “Over the past year, businesses with less than 500 employees have created nearly 80 percent of new jobs.”
The NMI registered 53.5 percent in January, 2.3 percentage points lower than the seasonally adjusted December reading of 55.8 percent. This represents continued growth in the non-manufacturing sector at a slower rate. According to the NMI, 10 non-manufacturing industries reported growth in January. The majority of the respondents’ comments are positive about business conditions; however, there is a concern that exists relative to global conditions, stock market volatility, and the effect on commercial and consumer confidence.
There will be no data releases from Eurozone tomorrow. In the US session Unemployment Claims figures are scheduled for a release. No significant change is expected.
Figures to watch:
Unemployment Claims (Thursday 14:30)
