The US economy is poised for a strong third quarter, with analysts predicting GDP growth of 3%. Resilient consumer spending and a booming services sector are driving this positive outlook. The Atlanta Fed’s GDPNow model forecasts even higher growth at 3.3%, highlighting the economy’s resilience amidst global challenges.
The latest S&P Global Purchasing Managers’ Index (PMI) for October reveals continued robust growth in the U.S. private sector. The services sector led the expansion, while manufacturing contracted at a slower pace. Key highlights include a surge in new orders, a slowdown in job creation, and a significant decline in inflation, bolstering hopes of a return to the Fed’s 2% target. Business confidence is also on the rise, signaling optimism for a stable economic environment.
The US services sector surged in September, driven by robust growth in new orders, reaching its highest level in 18 months. This indicates continued economic momentum in the third quarter. While job growth moderated, the overall picture paints a positive outlook for the economy, with the Federal Reserve expected to further ease interest rates.
The US services sector expanded at a faster pace than expected in August, according to the ISM Services PMI, indicating a resilient economy despite inflationary pressures and a potential slowdown. The S&P Global Composite PMI also showed improvement, suggesting a strong third quarter for the US economy.
This week’s business news roundup brings insights into the Godrej family business split, Wipro CEO’s high remuneration, India’s employment growth, rise of the services sector, audit trends among Nifty 500 companies, government’s thermal power generation hub plan, and the impact of extreme heat on India’s food supply.
European private sector economic activity rebounded strongly in April, driven by robust demand in services. However, inflationary pressures remain a concern, raising uncertainty about the European Central Bank’s (ECB) rate cut plans. The Eurozone Composite PMI Output Index rose to 51.4 from 50.3 in April, indicating growth in the services sector and a contraction in manufacturing activity.
The euro area economy is showing signs of recovery, with a major rebound in services activity. This has led to a rise in the euro’s value and dampened expectations for a rate cut by the European Central Bank (ECB) in June, at least for the time being.
