Market Wire, North America

The Federal Reserve’s preferred inflation measure continued its moderation in August and personal spending missed expectations, helping bolster bets on a second consecutive oversized rate cut at the central bank’s November meeting. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index rising 0.1 percent from the prior month, undershooting market forecasts for a 0.2 percent increase. On a year-over-year basis, core price growth rose to 2.7 percent, aligning with economist estimates as base effects shifted comparisons. The overall personal consumption expenditures index also rose 0.1 percent relative to the prior month, and...

US retail spending climbed last month, suggesting that underlying consumer demand continues to play a supportive role in powering growth – but gains were somewhat mixed below the headline level, suggesting that Federal Reserve officials are likely to downplay its accuracy in depicting underlying fundamentals ahead of tomorrow’s decision. According to figures published by the Census Bureau this morning, so-called “control group” retail sales sales – with gasoline, cars, food services, and building materials excluded – rose 0.3 percent in August, matching forecasts set at 0.3 percent. Total receipts at retail stores, online sellers and restaurants rose 0.1 percent on...

US labour markets softened more than expected for a second month in August, bolstering odds on a more decisive easing response from central bankers this autumn. According to data released by the Bureau of Labor Statistics, 142,000 jobs were added in the month, missing the 165,000 consensus forecast, and revisions to prior months saw overall gains lowered by a total 86,000 positions.  Wage gains accelerated, pointing to a stabilisation in worker bargaining power. Average hourly earnings climbed 0.4 percent month-over-month, doubling from 0.2 percent in the prior month, and were up 3.8 percent year-over-year.  The unemployment rate fell to 4.2...