Week ahead: Central banks review fresh figures

ANOTHER month, another raft of purchasing managers’ indices (PMIs) and non-farm payrolls for central bankers to digest.

Strong demand for new housing in London has buoyed the market, boosting builders including Redrow. Picture: Getty

No major shocks are expected on this side of the Channel, where PMIs should confirm that the recovery is in full flow and healthy inflation levels mean policymakers on Threadneedle Street can give the economy plenty of rope to run.

But on the Continent, Mario Draghi and chums face tougher choices and some watchers ­expect that, at the very least, the European Central Bank president will use his press conference to pave the way for more monetary measures to shore up the stagnating eurozone.

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Investec’s Philip Shaw said: “The key question is how much more open to the prospect of a further easing in policy, including QE, the ECB appears.”


• Manufacturing PMI – The industrial sector kicks off the new month’s data and is expected to remain in solid growth mode with a score above 55.

• Labor Day – US markets will be closed for the holiday.


• Redrow – The housebuilder is expected to reflect the buoyant housing market with full–year sales up 40 per cent to almost £850 million on the back of strong London demand.


• Services PMI – Recent readings have suggested that the largest chunk of the economy is in explosive form, but economists expect a slight easing from the 59.1 score recorded in July.


• Go-Ahead – The rail division is expected to have driven strong full–year results for the public transport group.

• Interest rates – Both the Bank of England and the European Central Bank are expected to keep rates at record lows.


• US jobs – It’s time for the non–farm payroll figures again, with more than 200,000 jobs likely to have been added.