The key ISM non-manufacturing was released yesterday afternoon. The data showed that the sector grew in August at its slowest pace since 2010, which in turn threatens to delay the Federal Reserve’s monetary policy plans. The sector continued to expand but its latest report signalled that third quarter US economic growth is lukewarm in Q3. Last week, the key jobs data was somewhat weaker than investors had expected.
Looking to the day ahead, the market will get a further insight on the health of the region with another reading from the employment sector. The JOLTS job openings is released today, measuring the number of job opportunities during the reported month, excluding the farming industry. A rising trend normally indicates a growing economy. Esther George’s testimony, the Federal Reserve Bank of Kansas City President, will be monitored closely today as she is due to testify on monetary policy and trade before the Financial Services sub-committee. After the European markets close the Beige book is released which provides anecdotal evidence supplied by the 12 Federal Reserve banks regarding local economic conditions in their district. Historically this is used to help make decisions on interest rates.
The next Federal Reserve meeting and press conference is due in a fortnight’s time which in light of the recent data will be very closely anticipated by investors.