US Weekly Jobless Claims Fall | German Manufacturing PMI Beats Forecast
Published August 22, 2019
The number of people who applied for unemployment benefits in mid-August in the US fell back toward a post 2008 recession low. Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 209,000. The US Dollar Index was trading flat at 98.20 after the release.
The latest manufacturing activity report from IHS Markit showed that German manufacturing unexpectedly reached a two-month high in August. German manufacturing PMI arrived at 43.6 against the expectation of 43.1. Meanwhile, services PMI came in at seven-month low of 54.4.
Minutes from the Fed’s last rate-setting committee meeting revealed that most officials saw the 25-basis point reduction as insurance against too-low inflation and the risk of a deeper slump in business investment, which has stemmed from uncertainty over President Donald Trump’s trade war. The minutes did not shift the outlook for further rate cuts this year.
Senior economists at the International Monetary Fund have warned against countries relying too heavily on monetary policy easing, arguing that this would hurt the functioning of the international monetary system and make all nations worse off.