During the trading on Thursday, October 3, 2019, financial markets will pay attention to the release of economic calendar data, which usually results in changes in price movements - the economic calendar is a key tool for the fundamental analysis of news to predict the performance of the markets. Therefore, care must be taken until the actual results of those data are released to take the right trading decision. The economic news today include:
US ISM Services PMI: In the US, the ISM Manufacturing PMI rose to 56.4 in August, rebounding from a three-year low of 53.7 recorded the previous month. This month's reading beat analysts' expectations of 54 and indicates the strongest growth in the services sector in three months. New orders rose at the fastest rate since February, while business activity increased more than ever since 2008. The outlook for September 2019: 55.1.
In the latest economic data: Data from the IHS Markit on Wednesday showed that the construction sector in the UK continued to decline during the month of September, as uncertainty of Brexit caused the decline in demand and sales. The Construction PMI fell to a reading of 43.3 in September, while the result was expected to remain unchanged at 45.0 in August. This was the second strongest contraction since April 2009. A reading below the 50 level indicates a contraction.
Commenting on the results, Joe Hayes, an economist at IHS Markit, said the performance of the UK economy is generally tied to the service sector, which shows a remarkable degree of flexibility to offset the perceived weakness in construction and manufacturing. Hayes noted that the commercial sector was significantly weak in September. Of the three sectors, business was the worst performer.
The ADP survey on Wednesday announced that US companies added a total of 135,000 jobs only in September, a sign that US employment is slowing, confirming that the prolonged global trade war is hurting the US economy and employers are becoming cautious. According to the results, employment has slowed particularly in the mining sector, which has already cut 3,000 jobs, and manufacturing added a total of 2,000 jobs only. Job gains at the pace last month were enough to keep the unemployment rate from rising. There are few signs of large-scale layoffs. But labor demand, which has pushed the average monthly employment of more than 200,000 last year, has dwindled this year.
ADP figures do not include government employment and differ significantly from the official government report, which includes public and private sector jobs, due on Friday. Economists expect the report to show only 140,000 jobs.