Friday preview: Non-farm payrolls set to steal the show

(Sharecast News) - Another raft of overseas economic indicators are on the schedule for Friday, but it will be the all-important non-farm payroll data from the US that will steal the headlines. Non-farm payrolls are predicted to show a softening in job creation to 170,000 in August, from 187,000 the previous month.

The release follows the unofficial ADP Research Institute report on Wednesday which revealed that a lower-than-expected 177,000 jobs were created in the US private sector in August, down from 324,000 in July.

"Bets have risen that the Federal Reserve will keep interest rates on hold when policymakers meet in September, given signs that the employers are becoming more cautious about hiring, reducing worries about hot wage growth preventing the price spiral coming down," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

"Investors are waiting for the all-important non-farm payrolls figure to drop tomorrow, which is expected to add another big piece to the picture of a cooling labour market."

Nevertheless, data out on Thursday will have complicated the picture somewhat, showing that consumer spending was still rising in July despite disposable incomes remaining flat and core inflation picking up.

Back to Friday's data, the official US unemployment rate, also due out at 1230 BST, is forecast to show that joblessless remained stable at 3.5% in August.

The ISM purchasing managers' index is also due for release, at 1400 BST, and is expected to show that the decline in manufacturing activity eased slightly in August. The PMI, where a level below 50 indicates a contraction in activity, is predicted to improve to 47, from 46.4 the previous month.

No major UK-listed companies were due to report earnings results or trading updates on Friday, so the main focus on home shores will be on the UK's own manufacturing PMI out at 0930 BST, which is expected to have held steady at 43.7 in August.



Friday 1 September

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Inchcape, Impax Environmental Markets, CVC Income & Growth Limited NPV GBP, Mobico Group, Invesco Perpetual UK Smaller Companies Inv Trust, CVC Income & Growth Limited NPV Euro, RTC Group, Bluefield Solar Income Fund Limited, TwentyFour Select Monthly Income Fund Limited, PayPoint, Blackstone Loan Financing Limited (EUR), Jupiter Fund Management, PRS Reit (The), Blackrock Throgmorton Trust, Blackrock Income And Growth Investment Trust

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JpMorgan China Growth & Income, ICG Enterprise Trust, JPMorgan Claverhouse Inv Trust, Greencoat Renewables (CDI), Octopus Renewables Infrastructure Trust

UK ECONOMIC ANNOUNCEMENTS

PMI Manufacturing (09:30)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

PMI Manufacturing (GER) (08:55)

PMI Manufacturing (EU) (09:00)

Non-Farm Payrolls (US) (13:30)

Unemployment Rate (US) (13:30)

PMI Manufacturing (US) (14:45)

Construction Spending (US) (15:00)

ISM Manufacturing (US) (15:00)

Auto Sales (US) (20:30)