Week Ahead Economic Preview: Week of 28 October 2019
- Global PMI surveys updated for October
- FOMC meeting
- Non-farm payrolls
- US, Eurozone, Hong Kong and Taiwan GDP
- Brexit and US earnings season
- Special reports on diverging investment trends in the eurozone and the headwinds facing South Korea's economy
A busy week ahead includes the eagerly awaited FOMC meeting, manufacturing PMIs from around the world, US non-farm payrolls, GDP data from both the US and eurozone, as well as a key Bank of Japan meeting. All of which takes place against the backdrops of escalating Brexit drama and a US earnings season in full swing.
Markets will be on tenterhooks ahead of the FOMC's meeting on Wednesday, currently pricing-in a further cut. No change in policy will therefore upset markets, but a cut is by no means assured. Similarly, US GDP, non-farm payrolls and PMIs from both the ISM and IHS Markit will guide markets in what will also be a key week for earnings reporting.
UK PMI data will meanwhile be watched for recession signals, but the markets will be dominated by politics as Brexit tensions mount, with the focus shifting from an exit on 31st October to an extension and whether Boris Johnson can persuade MPs to vote for a general election. Eurozone PMI data meanwhile accompany the single currency area's official GDP release for the third quarter, and will help steer policymaking at the ECB as Christine Lagarde steps in to take the helm of the central bank.
In Asia, China PMIs form just one of a 12 survey releases for the region from the global manufacturing PMI suite, though the Bank of Japan policy meeting will also be under the limelight after signs of the economy being hit by the recent sales tax hike. Hong Kong and Taiwan GDP data are also published, with the former likely to draw particular attention.
Our special reports this week look at how the eurozone looks likely to see a divergence in investment trends between construction and machinery, while South Korea is showing signs of being hit by global headwinds.
Download the report for the full content which includes:
- Global overview
- Key diary events
- US week ahead
- Europe week ahead
- Asia Pacific week ahead
- Eurozone investment divergence ahead
- South Korean GDP growth moderates as global headwinds rise
- PMI commentary: Chris Williamson
- Europe commentary: Ken Wattret
- APAC commentary: Rajiv Biswas and Bernard Aw
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Purchasing Managers' Index™ (PMI™) data are compiled by IHS Markit for more than 40 economies worldwide. The monthly data are derived from surveys of senior executives at private sector companies, and are available only via subscription. The PMI dataset features a headline number, which indicates the overall health of an economy, and sub-indices, which provide insights into other key economic drivers such as GDP, inflation, exports, capacity utilization, employment and inventories. The PMI data are used by financial and corporate professionals to better understand where economies and markets are headed, and to uncover opportunities.
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