In the US session GDP and ADP job data were released. Private sector employment increased by 237,000 jobs from July to August according to the August ADP National Employment Report. “In August, the goods-producing sector saw the best performance in months with solid increases in both construction and manufacturing,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Additionally, the trade industry pulled ahead to lead job gains across all industries, adding the most jobs it has seen since the end of 2016. This could be an industry to watch as consumer spending and wage growth improves.”
Separate report on GDP showed that increased at an annualised rate of 3.0% for the second quarter of 2017. This was an increase from the first estimate of 2.6% and above the consensus forecast of 2.7% while the economy expanded at the fastest pace since the first quarter of 2015. There was an upward revision to personal consumption expenditure growth to 3.3% from 2.8% previously. Investment made a positive contribution to the quarter with strong growth in non-residential capital spending. There was also a slightly larger net positive contribution from trade for the quarter.
There will be no major data releases from the UK tomorrow. In the US session Unemployment Claims, Chicago PMI and Pending Home Sales figures will be published. Analysts predict increase to 237,000 in unemployment claims, little change in Chicago PMI and 0.4% incline in Pending Home Sales.
Figures to watch:
Unemployment Claims (Thursday 14:30)
Chicago PMI (Thursday 15:45)
Pending Home Sales (Thursday 16:00)
