UK services industry signals strong growth

The services PMI (purchasing managers index) was at a level of 57.4 in July, a tiny drop from June`s 58.5. Any level above 50.0 indicates an expansion in the industry.

However, employment rose at the slowest rate since 2013. The full report can be found here.

New Zealand unemployment rate rises to 5.9%

The unemployment rate rose to 5.9% in the June quarter compared to 5.8% recorded in the previous period. In addition, 7000 more people were employed in the second quarter, bringing the employment change to 0.3%.

The labour report can be found here.

GDT index down

The GDT index dropped to -9.3%.

UK construction output slows down in July

The UK construction PMI dropped to 57.1 in July after hitting a level of 58.1 in June. Residential building expanded at the slowest rate since mid-2013. The full report can be found here.

In addition, Reuters has a write up on the construction industry as well.

WSJ: Foreigners frosty on Australian debt

The Wall Street Journal has an article today regarding Australian bonds. (note: this article is for paid subscribers)

Basically the article highlighted the woes Australia is currently facing which include:
- plunge in commodity prices.
- increase in unemployment.
- risk of a property bubble.

The Australian dollar has declined sharply against the US dollar while the yield advantage over US Treasurys is getting narrower. These in turn, are discouraging foreign purchases of Australian bonds.

RBA rate statement

The cash rate remained unchanged at 2.00% while the Reserve Bank of Australia`s (RBA) rate statement can be viewed here.

Australia`s trade balance deficit widens

The trade balance deficit widen to 2.93 billion in June compared to 2.68 billion in the previous period. This is however better than what economists were predicting. The full report can be found here.

Australia`s retail trade up by a bit

Retail sales accelerated by 0.7% in July compared to a 0.4% growth in June. The full report can be found here.

UK manufacturing PMI up slightly

The manufacturing PMI (purchasing managers index) increased slightly to 51.9 in July after recording a level of 51.4 in June. Reuters has a write up on the manufacturing industry.

The full PMI report can be found here.

China`s manufacturing PMI at a two year low

China`s manufacturing PMI (purchasing managers index) dropped to 47.8 in July, indicating a contraction. What is worrying is that both domestic and foreign demand have dropped. The full report can be found here.