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Janet Mui: weekly economic update 4 October

Anxious markets are questioning whether weakening US manufacturing data is beginning to spill over into services.

04/10/2019
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Authors

Janet Mui
Global Economist, Cazenove Capital
  • Concern is growing in markets as a raft of recent data points to a deteriorating global economic picture. Major equity indices were down by as much as 3% at certain points in the week.
  • Anxiety rose on the back of data showing US manufacturing contracting. The US services sector also appeared to slow in September.
  • Payroll data showed a slowdown in job creation, and wage growth is also slowing. This raises concern that US consumers – who have been an economic mainstay – will contribute less in future.
  • Unwelcome data is also emerging in Europe, where manufacturing is now at its weakest in six years.
  • These developments pressure the Federal Reserve to take further supportive action again – possibly as early as this month.

 

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Authors

Janet Mui
Global Economist, Cazenove Capital

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Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at 40 Esplanade, St. Helier, Jersey JE2 3QB, (No.31076).

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