US Economy Continues to Contract as August Manufacturing PMI Declines

According to Odaily, the latest report on the US ISM August Manufacturing PMI indicates a continued contraction in the American economy. The data has influenced traders to increase the probability of a 50 basis point rate cut by the Federal Reserve in September from 30% to 39%, as per the Chicago Mercantile Exchange (CME) FedWatch tool. However, the majority still expect a 25 basis point cut, with a 61% probability. The primary focus of US macroeconomic news remains the August employment report, set to be released on Friday. This report could be a decisive factor for the Federal Reserve's decision to either cut rates by 25 or 50 basis points. Economists predict that job gains will rebound from 114,000 in July to 160,000 in August. Additionally, the unemployment rate is expected to decrease from 4.3% to 4.2%.