Features

Money Minute, Tuesday 1 October: manufacturing data and eurozone inflation

In today's Money Minute we get the latest readings from the ISM Manufacturing index, plus inflation data from the eurozone.

This morning in the UK and eurozone, and later on in the US, we get the latest readings from the ISM Manufacturing index.The index gives a view of the health of a country or region's manufacturing sector. A reading below 50 means the sector is shrinking above 50 means it is growing.

In both the UK and the eurozone, manufacturing activity is clearly shrinking, and has been for some time.In the US meanwhile, in August, the index dipped below 50, the lowest reading seen since 2016.However, the September reading is expected to rebound back above 50, which would indicate that activity in the sector continues to expand, albeit slowly.

We also get the latest inflation data from the eurozone. Eurozone inflation is expected to come in at around 1%, which is well below the European Central Bank's target rate of around 2%.That would appear to vindicate the controversial decision by the outgoing central bank governor Mario Draghi to restart quantitative easing.

Recommended

Too embarrassed to ask: what is fiscal drag?
Too embarrassed to ask

Too embarrassed to ask: what is fiscal drag?

How can politicians raise more tax revenue, without damaging their political popularity too badly? One way is by using “fiscal drag”. Here's what that…
2 Mar 2021
What is “yield curve control” and why is it coming to a central bank near you?
Government bonds

What is “yield curve control” and why is it coming to a central bank near you?

Central banks around the world are determined not to let interest rates go up too quickly or by too much – a practice known as “yield curve control”. …
1 Mar 2021
Are we heading for another bond market tantrum?
Government bonds

Are we heading for another bond market tantrum?

The last time the US central bank tried tightening the purse strings, the bond markets threw a tantrum. With yields now rising, could we be about to s…
25 Feb 2021
Four ways to boost Britain’s stricken economy
UK Economy

Four ways to boost Britain’s stricken economy

When lockdowns end, we will need a plan to get our businesses up and running again. Matthew Lynn outlines four urgently needed measures that the gover…
21 Feb 2021

Most Popular

A beginner’s guide to bitcoin: how to buy bitcoin
Bitcoin

A beginner’s guide to bitcoin: how to buy bitcoin

For the novice, buying bitcoin can be a daunting prospect. Here, Dominic Frisby outlines the process from start to finish.
2 Mar 2021
A beginner’s guide to bitcoin: what is bitcoin?
Bitcoin

A beginner’s guide to bitcoin: what is bitcoin?

As a completely novel concept for many people, bitcoin can take a little effort to get to grips with. In the first of a short series on the cryptocurr…
1 Mar 2021
What is “yield curve control” and why is it coming to a central bank near you?
Government bonds

What is “yield curve control” and why is it coming to a central bank near you?

Central banks around the world are determined not to let interest rates go up too quickly or by too much – a practice known as “yield curve control”. …
1 Mar 2021