The last week of September was marked by central bank meetings in Australia and Switzerland, along with key reports from the US on consumer spending, durable goods orders, and GDP. Germany and the eurozone released noteworthy data, highlighting increasing economic challenges.
On Monday, German business activity dropped to 47.2 in September, signaling a recession. This was the lowest figure in seven months. The services PMI declined to 50.6, while the manufacturing sector remained sluggish at 40.3.
In the eurozone, the preliminary HCOB PMI fell to 48.9, dipping below 50 for the first time since February. The services sector remained flat at 50.5, while the manufacturing sector weakened to 44.8.
In the US, business activity stayed steady, but price growth for goods and services picked up speed, potentially hinting at a resurgence of inflation. The PMI stood at 54.4, while the manufacturing PMI fell to 47.0, a 15-month low.
On Tuesday, the Reserve Bank of Australia held its benchmark interest rate steady at 4.35%, reaffirming the need for tight monetary policy to curb inflation.
German business confidence also worsened, with the Ifo index at 85.4, missing analysts' expectations.
In the US, the Conference Board’s consumer sentiment index dropped to 98.7, reflecting weakened consumer confidence. Meanwhile, Australia’s inflation hit a three-year low at 2.7% year-over-year.
A Wednesday report showed US new home sales exceeded expectations, reaching 716,000 in August. The Energy Information Administration also reported a 4.471 million barrel drop in US crude oil inventories, a positive market indicator.
On Thursday, the Swiss National Bank reduced its benchmark interest rate by 0.25 percentage points to 1.00%, raising hopes for more policy easing.
US jobless claims fell to 218,000, indicating a stable labor market.
The Commerce Department's durable goods orders report showed no change, surprising analysts, while the US GDP grew 3% year-over-year in the second quarter, confirming strong economic performance.
Personal consumption expenditure data and Canada’s GDP report are expected on Friday, offering further insights into the health of both economies.
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