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Positive economic signals from US and UK

Positive economic signals from US and UK

The US ISM manufacturing index came in at 51.6 for September – a full point higher than both the August number and the consensus expectations. The data revealed that employment, production and new export orders all rose. This will help to relieve fears that the US economy is close to entering back into recession. UK manufacturing PMI also managed to come in above expectations at 51.1, suggesting that the UK may be able to avoid the double dip recession.

Meanwhile, the final PMI manufacturing data for the Euro zone confirmed that Q3 GDP is pointing towards stagnation. Also, the data showed that weakness is no longer confined to the periphery, as Germany and France started to feel the pinch. All countries showed a worrying decline in new orders (and export orders), pointing towards a sharper decline in the future. Spanish manufacturing declined sharply to 43.7 from 45.3. This is a worrying development for the Spanish economic outlook, which is already suffering from the highest unemployment in the industrialised world.

Unfortunately, the positives of the UK and US data were not pondered on for too long yesterday, with markets preferring to concentrate on the ever declining Euro zone. European finance ministers have told Greece that no further concessions will be granted, even though Greece has admitted that it will miss its latest deficit reduction targets. The reason that these targets will be missed is that the speed and size of the austerity measures is now interfering with growth projections.

There were also rumours yesterday Dexia, the Franco-Belgium bank, was close to being the first casualty from the Greek crisis. However, there has been some positive news this morning, with the finance ministers of Belgium and France stating that they will take all measures necessary to protect Dexia’s account holders and creditors.

What does this all mean for me? Well buying your EUR, USD, AUD or any other currency at the wrong time could cost you a fortune. There is no crystal ball but Currency UK can give you the information you need to make an informed decision.

Currency UK will then offer you the best exchange rates available and ensure that you subsequent international transfers are handled as quickly and as efficiently as possible.

Contact us now on +44 (0)20 7738 0777 or click here.

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