The US economy is slowing, according to a monthly index released Monday, increasing the likelihood that policymakers will cut interest rates next month. The Chicago Fed's National Activity Index fell slightly to minus 0.19 in July from a downwardly revised minus 0.18 in June. A reading below zero indicates slower growth than the long-term average. Employment indicators remained negative on the index, a fresh sign of fragility in the US labor market. This weakness is one of the main reasons for a rate cut at the Fed's policy meeting next month. Central bank Chairman Jerome Powell last week...
Sales of new single-family homes in the United States surged by 7.4% from the previous month to a seasonally adjusted annualized rate of 724,000, extending the 1.8% increase in the earlier period to the highest in six months, and firmly above market expectations of 680,000 homes. The sales were in line with the growth in mortgage applications in the period as benchmark borrowing costs fell. Source: Trading Economics
The latest Services PMI data, released by Markit Economics, has indicated a slowdown in the growth of the private sector service companies. The actual figure came in at 51.4, a significant drop from the forecasted 52.8. The Services PMI, a key indicator of economic health, is based on surveys of over 400 executives in private sector service companies, covering sectors such as transport and communication, financial intermediaries, business and personal services, computing & IT, hotels and restaurants. An index level above 50 signals an improvement, while a level below 50 indicates a...
The Manufacturing Purchasing Managers' Index (PMI) in the US has shown an unexpected increase, according to recently released data. The actual PMI was reported to be 50.7, outperforming both the forecasted and previous figures. Predictions for the PMI had been set at 49.0, indicating a forecasted contraction in the manufacturing sector. However, the actual figure of 50.7 not only exceeded this forecast but also surpassed the previous month's PMI of 50.2. This indicates a slight expansion in the manufacturing sector, as a PMI reading above 50 is generally seen as a sign of growth. The PMI...
U.S. President Donald Trump delivered remarks on the state of trade relations with China and other countries Tuesday, emphasizing the positive impact of tariffs on the American economy and outlining his administration's approach to international trade deals. Trump highlighted the reduction of trade deficits and the revenue generated from tariffs on imported automobiles, steel, and aluminum. Trump asserted that the U.S. is "doing fine with China" and other countries, contrasting the current situation with the previous administration, which he claimed saw the U.S. losing "$5 billion a day" on...
Japan's 10-year government bond yield edged above 1.3% on Tuesday as the country held a liquidity enhancement auction, offering insights into investor appetite for super-long maturity bonds. The Finance Ministry was scheduled to issue a total of 450 billion yen in long-dated securities, drawing market focus to potential shifts in demand. Looking ahead, attention is turning to next week's Bank of Japan policy meeting. The central bank is widely expected to keep its benchmark interest rate steady at 0.5%, but may revise its economic growth projections downward amid growing external risks....
President Donald Trump said he would fire Lisa Cook from the Federal Reserve's Board of Governors if she does not resign her post over mortgage-fraud accusations from a top...
The Reserve Bank of Australia (RBA) maintained its cash rate at 4.1% during its April meeting, holding borrowing costs unchanged after slashing 25 bps in the February meeting, aligning with market...