Eurozone Service Sector: At 55.9 in August, up slightly from 55.8 in July, the Final Markit Eurozone Services Business Activity Index rose to a three-month high and was above the earlier flash estimate of 55.6. Business activity has now increased throughout the past year.
Principal news stories from the Irish Independent, Irish Times, Irish Examiner, Financial Times and New York Times.
Irish Services: The seasonally adjusted Business Activity Index - - which is based on a single question asking respondents to report on the actual change in business activity at their companies compared to one month ago - - dropped to 52.9 in August, from 55.7. The reading signalled a fifth consecutive rise in business activity at Irish service providers, although the rate of expansion eased to the weakest since May. Where higher activity was recorded, respondents mentioned higher new orders from both domestic and external markets.
Irish pension managed funds fell back slightly in August, with an average return of -0.8% for the month, although some managers did stay in positive territory.
The Irish Exchequer deficit at end-August 2010 was €12.1bn, according to the Department of Finance this afternoon. The Department said this compares to an Exchequer deficit of €18.7bn in the period to end-August 2009 and in overall terms, is generally in line with expectations and the Budget Day targets for 2010 remain valid. Tax revenues are just under €1.9bn or 9% below the corresponding period in 2009. Net voted expenditure is just under €1.8bn or 6% lower.
European Central Bank President Jean-Claude Trichet today announced the extension of emergency lending measures for banks into 2011. He also announced an upward revision in economic forecasts for 2010 and 2011.
The number of contracts to purchase US second-hand house unexpectedly rose in July, signalling the market may be starting to stabilize after a plunge in the aftermath of the expiration of a homebuyer tax credit last April. US retailers in August reported a back-to-school bounce but at the expense of big discounts and new weekly jobless benefit claims fell 6,000 last week.
The European Central Bank (ECB) as expected kept its benchmark interest rate on hold at 1.0%, at a meeting of the governing council in Frankfurt, today. The ECB president, Jean-Claude Trichet, will address a press conference and he is expected confirm the continuation of emergency funding for Eurozone banks into 2011.
GDP (gross domestic product) increased by 1.0% in both the Eurozone (EA16) and the EU27 during the second quarter of 2010, compared with the previous quarter, according to the latest estimates released by Eurostat, the statistics office of the European Union. In the first quarter of 2010, growth rates were +0.3% in both zones. First quarter growth was revised up. Growth outpaced US and Japan.
Markets news on stocks, currencies and commodities; ECB expected to keep emergency bank support measures in place into 2011; Total Produce reports 5.5% rise in H1 2010 pre-tax profits.
