European Central Bank president Mario Draghi said low interest rates are needed to return to higher rates in future, and other policy measures must assist more decisively to get the full benefits of monetary policy. He said monetary policy was needed to achieve strong, sustainable recovery. The measures are having an impact and are assisting economic recovery by creating jobs while savers and pensioners are benefiting.

According to the IFO economic institute, German business confidence rose significantly in September, recovering from a post-Brexit fall in August. The business climate index jumped to 109.5 points from  106.3 in August. The reading was the highest level since May 2014. Current business sentiment index climbed from 112.9 point in August to a two-month high of 114.7. Confidence in the future outlook rose to 104.5 from 100.1 points in August. Economists expected the business confidence index to be unchanged.

A report released by the Conference Board last week showed that US consumer confidence improved unexpectedly in September. The consumer confidence index rose to 104.1 in September from 101.8 in August. This was the strongest reading since August 2007 when it stood at 105.6. The increase in the index exceeded economists’ projections who were expecting it to fall to 98.8 from 101.8 in August. Consumer confidence rose in September for a second consecutive month and is at its highest level since the recession.

Data from the National Bureau of Statistics showed that profits in China’s industrial sector in August grew at the fastest pace in three years. Profits of industrial firms in China jumped 19.5 per cent from a year earlier to 534.8 billion yuan in August, higher than the 11 per cent rise in July. Total industrial profits increased by 8.4 per cent year-on-year compared with a 6.9 per cent rise in the first seven months of this year. State-owned firms’ profits fell 2.1 per cent while private firms’ profits rose to 8.4 per cent in the January to August period.

This report was compiled by Bank of Valletta for general information purposes only.