The US labour market recovery remains on track with a solid report indicating 173,000 new jobs and a 5.1 per cent unemployment rate in August, as job openings rose to 5.75 million, the highest level in at least 14 years.

But the employment report has not clearly answered the question whether the lift-off will take place in two weeks’ time or whether the Federal Reserve prefers to wait a little longer against the backdrop of recent turmoil.

According to the same data, non-farm payrolls rose by 173,000 in August, which was below forecasts. The fall was balmed on a smaller number of people registered as unemployed and a distinct employment increase. Meanwhile attention turns to the Fed’s interest rate meeting on Thursday.

Revisions to eurozone GDP showed the economy was slightly stronger in the first half of the year, with first quarter GDP growth revised from 0.4 per cent to 0.5 per cent due to a better than estimated investment and trade surplus. Trade balance rose again in the second quarter, adding another 0.3 per cent to GDP. This probably reflected the boost from the euro’s weakening over the previous year. But the data still show a slowdown in quarterly GDP growth in the second quarter, from 0.5 per cent to 0.4 per cent driven by a slowdown in domestic demand.

Despite this, data suggest that eurozone GDP growth might be slightly stronger this year than originally thought, this could push the European Central Bank further towards expanding its quantitative easing programme.

UK industrial production unexpectedly declined and goods exports plunged the most in nine years, indicating a loss of economic momentum that may keep the Bank of England on a cautious policy footing. But developments in China were the main reason for the bank’s decision to leave interest rates unchanged.

In the meantime, total production fell 0.4 per cent in July, missing economists’ forecasts for a 0.1 per cent increase. Sales of British goods abroad fell 9.2 per cent, contributing to the biggest drop in factory output since January.

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