Strategy & economics
Janet Mui: weekly economic update 4 October
- 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.
This article is issued by Cazenove Capital which is part of the Schroder Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. All data contained within this document is sourced from Cazenove Capital unless otherwise stated.