Recent data from the United States (US), according to S&P Global, suggests a mixed economic landscape. The Manufacturing Purchasing Managers’ Index (PMI) for the US rose to 49.8 points in September, up from 47.9 points in August. While this indicates an improvement in manufacturing activity, it remains below the critical 50-point threshold for growth for the fifth consecutive month. On the other hand, the Services PMI slowed to 51.0 points from 50.5 points in August, reflecting stagnation in business activity due to weaker domestic and foreign demand. The Composite PMI, measuring overall private sector activity, remained unchanged at 50.2 points. Despite some positive signs, high interest rates and increased living costs may continue to hamper business activity in the near term.
In the United Kingdom (UK), the private sector faces similar challenges. The UK’s composite PMI fell to 48.5 points in September, remaining below the growth threshold for the second consecutive month. The Manufacturing PMI in the UK settled at 44.3 points, indicating ongoing challenges in the sector, including weak consumer demand and market uncertainty. The Services PMI also declined to 49.3 points, primarily due to sluggish business conditions and rising borrowing costs. The short-term outlook for the UK’s private sector activity remains subdued, largely impacted by the rising cost of living and interest rates.
Global Market Sees Stock Decline for Third Consecutive Week
Global stock markets faced a challenging week as Treasury yields surged, triggered by strong jobs data that increased expectations of additional interest rate hikes by the US Federal Reserve later this year. US equities, including the DJIA and S&P 500, were on track for a weekly loss as concerns over further rate hikes weighed on investor sentiment. European equities, such as STOXX Europe and FTSE 100, also faced bearish sentiments, influenced by robust US labor market data and rising bond yields. Asian markets mirrored the negative trend, with the Nikkei 225 and Chinese equities being affected. Emerging and Frontier market indices also closed in the red due to bearish sentiments in various regions.
Overall, the global economic outlook remains uncertain, with various economies facing challenges in different sectors. Investors and policymakers continue to monitor these developments closely as they navigate a complex economic landscape.
