Daily Insight
Group Economics Macro & Financial Markets Research
05 November 2015
Rising US rate hike expectations Maritza Cabezas
US data released on Wednesday show that economy has started to shrug off the impact of the earlier financial stress
Senior Economist Tel: +31 20 343 5618 maritza.cabezas @nl.abnamro.com
US dollar strengthens as expectations for rate hike increase…
…but stronger dollar leads to a renewed tightening of financial conditions
US ADP private employment report shows moderate job gains October’s ADP report showed that private employment increased by 182K, coming down from a downwardly revised 190K the previous month. Small businesses hiring contributed with half of this increase. Goods producing employment picked up by 24K, resulting in the strongest increase since January. Services employment rose by 158K, down from 182K the previous month. From an industry perspective, manufacturing continued to subtract jobs. For the employment report to be released on Friday, we are expecting an increase of 170K. The expected gains are consistent with an economy that is growing around trend rates and with more stability in financial markets.
ADP private employment shows modest job gains 000s
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ADP employment
Source: Thomson Reuters Datastream
US services PMI picks up in October The US services sector has been holding up well in contrast to manufacturing activity and is consistent with the stronger consumption growth of the past months. Indeed, the ISM non-manufacturing index increased to 59.1 from 56.9 the previous month. The new
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