In the eurozone, the European Central Bank (ECB) kept rates at a record low of 1%, as expected, and said it would only decide next month whether to resume its exit from generous liquidity supplies.

The Purchasing Managers’ Index (PMI) for the manufacturing sector was revised upward to 56.7 from the previous flash estimate of 56.5, and was more than the 55.6 in June, driven by strong performance in German factories. Meanwhile, the services sector PMI was revised down to 55.8, from a preliminary estimate of 56.0, but up from June’s 55.5.

After rebounding in May, retail sales remained flat in June, mainly driven by falls in household spending of 0.9% in Germany and 1.3% in France. On a year-on-year basis, retail sales in the 16-nation euro area rose by a more than expected 0.4%.

In the UK, the Bank of England’s (BoE) monetary policy committee held interest rates at 0.5%. As expected, the committee also kept its bond-stimulus plan at £200 billion. The minutes to the meeting will be published on August 18.

In the manufacturing sector, growth eased slightly in July as the PMI fell to 57.3, from 57.6 in June. This was above forecasts of 57, and still close to May’s 15-year high of 58.1. The UK services industry grew at its slowest rate in 13 months in July. In fact, the sector’s PMI index fell to 53.1 from 54.4 in June. This was below economists’ forecasts of an unchanged reading.

Manufacturing production rose by a less than expected 0.3% in June, after rising by the same amount in May. However, industrial output unexpectedly fell 0.5% in June, partially reversing May’s 0.7% rise.

In the US, factory orders fell 1.2% in June, more than double the 0.5% drop projected. In the labour market, non-farm payrolls fell by 131,000 as temporary jobs for the decennial census dropped by 143,000. The government revised payroll figures for May and June, to show 97,000 fewer jobs while the unemployment rate was unchanged at 9.5% in July for a second consecutive month.

In the manufacturing sector, the Institute for Supply Management index was higher than expected; however the internal components point to significant weakness over the coming months. The index fell to 55.5 in July from 56.2 the previous month. The details were mixed, with new orders falling further from 58.5 in June to 53.5.

This article has been prepared by Bank of Valletta plc for your general information only.