Dear Reader,

Today's overview of economic news and market action

• Investor sentiment retained a cautious stance yesterday
• Data-wise, US macro news provided further signs of a softening jobs market
• On the currency front, the yen made strong gains
• Elsewhere, the dollar weakened marginally versus sterling and the euro
• EUR/USD opens this morning, slightly higher within the upper half of $1.10-1.11
• Today’s main macro data highlight is the US non-manu ISM (Aug)

All rates quoted are indicative market rates.

The headline AIB Ireland Manufacturing PMI® edged up to its highest level since February and signalled a marginal overall improvement in business conditions. An upturn in manufacturing sector performance mostly reflected sustained production growth and a faster rise in employment numbers. Survey respondents often commented on efforts to boost capacity in line with long-term business expansion plans.

Irish services activity continued to rise solidly in August, AIB PMI® survey data indicated. Growth of both new business and employment accelerated, and outstanding work increased at the strongest rate in nearly a year. Less positively, the overall 12-month outlook was the weakest since November 2022.

House prices continue to trend sharply higher. They were up 8.6% YoY in June. Consumer prices rose by 0.2% in July, amid further increases in transport and hospitality costs. Revisions to the data show the unemployment rate averaged 4.4% in Q2’24 up from 4.3% in Q1’24. The preliminary reading indicates GDP expanded by 1.2% in Q2’24, but it remained 1.4% lower in YoY terms.