The Chinese economic recovery is continuing to power ahead. This is the fifth sequential month in which business activity has risen. Services were particularly strong (Caixin Markit Services PMI came in at 54.8 – the steepest increase since June, and the fifth straight month of expansion).
The US saw wholesale inventories rise 0.4% month on month, but fall -5.2% year on year, in August. In the week ending October 3rd 840,000 Americans filed unemployment claims, above estimates for 820,000. It was the sixth consecutive week with claims stuck at the 800,000 level, pointing to a slowdown in the labor market recovery.
In Europe, the ECB, during the September policy meeting, showed the central bank stands ready to support the economy and inflation, and it’s prepared to slash interest rates into deeper negative territory and change the conditions of monetary support schemes if needed.
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