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This morning in the UK and eurozone, and later on in the US, we get the latest readings from the ISM Manufacturing index. The index gives a view of the health of a country or region’s manufacturing sector. A reading below 50 means the sector is shrinking – above 50 means it is growing.
In both the UK and the eurozone, manufacturing activity is clearly shrinking, and has been for some time. In the US meanwhile, in August, the index dipped below 50, the lowest reading seen since 2016. However, the September reading is expected to rebound back above 50, which would indicate that activity in the sector continues to expand, albeit slowly.
We also get the latest inflation data from the eurozone. Eurozone inflation is expected to come in at around 1%, which is well below the European Central Bank’s target rate of around 2%. That would appear to vindicate the controversial decision by the outgoing central bank governor Mario Draghi to restart quantitative easing.