"The manufacturing sector is slowing towards contraction and the primary cause is a drop in global demand."
- Investment Technology Group
The number of Americans who applied for the US unemployment benefits rose by 10K to 277K in the week ended September 26, but initial claims remain extremely low in a sign of steady improvement of the labour market. The figure missed market expectations, as it anticipated the reading of total 273K claims. Overall, jobless claims in the US are hovering near historically low levels despite headwinds from slowing emerging economies, as employers retain staff amid solid domestic demand. Meanwhile, in annual terms the number of people continuing to receive jobless benefits dropped by 53,000 to 2.19 million.
Meanwhile, activity in the manufacturing sector of the world's biggest economy slumped to its lowest level since May 2013 and is approaching a contraction territory. The PMI indicator released by the Institute for Supply Management slid for a fourth consecutive month to reach 50.2 points in September, down from 51.1 in August. Analysts estimated a downward change to 50.6 points only. Among factors weighing on activity in the industry, analysts mention strong US Dollar, fears over slowdown in China and turbulent equity markets, while falling oil prices dragged lower growth in extraction sector.
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