BBH: US August Manufacturing PMI Expected to Remain Below 50

Analysts at Brown Brothers Harriman (BBH) have indicated that the preliminary US PMI data for August will be released tonight, with the manufacturing PMI expected to remain steady at 49.0, the services PMI expected to decrease by 3 points to 52.0, and the composite PMI expected to decline by 0.5 points to 51.5.

If in line with expectations, the composite PMI would be the lowest level since February.

If all indicators in the US PMI report surprisingly turn positive, it would help reinforce the notion of prolonged rate hikes, countering expectations of a rate cut by the Federal Reserve in early 2024.

The euro against the US dollar could face renewed selling pressure.