Economic Indicators - The ISM Services PMI increased from 50.1 in July to 52 in August, exceeding market expectations of 51, indicating economic expansion[2] - The Services PMI corresponds to an annualized GDP growth rate of 1.1%[2] - The Manufacturing PMI rose slightly from 48 in July to 48.7 in August, but remained below the market expectation of 49, indicating a continued contraction[2] Employment and Inflation - The employment index in the services sector slightly improved from 46.4 to 46.5, indicating ongoing weakness in the job market[2] - The price index for services decreased marginally from 69.9 to 69.2, but remains significantly high compared to the post-pandemic average[2] - If August's non-farm payrolls are below 50,000 and the unemployment rate rises to 4.3%, the Federal Reserve may consider rate cuts in September or October[1] Market Outlook - The new orders index in manufacturing surged from 47.1 to 51.4, marking the highest expansion rate since the beginning of the year[2] - The Federal Reserve's focus has shifted from inflation risks to a more balanced assessment due to recent labor market data adjustments[2] - Further rate cuts are anticipated in December and potentially two more in the following year as economic growth stabilizes and inflation decreases[1]

Core Insights - The Italian National Institute of Statistics (ISTAT) reported that the business confidence index in Italy remained stable as of August 2025 [1] Industry Analysis - Business confidence in Italy showed a divergent trend across sectors: confidence in manufacturing, construction, and retail sectors declined, while the confidence in the market services sector significantly improved [1] - The decline in confidence in certain sectors was attributed to negative factors such as poor production or business expectations, inventory accumulation, and unfavorable order trends [1] - The recovery in market services confidence was primarily driven by positive developments in the transportation and warehousing, as well as information and communication industries [1]

Group 1: Economic Activity - The ISM's Services PMI for July recorded at 50.1%, indicating continued economic expansion despite a slight decline from June's 50.8% [1] - The Services PMI has been in the expansion zone for 12 out of the last 13 months, reflecting resilience in the sector [1] - Business activity index for July was at 52.6%, down from 54.2% in June, but still indicates overall business activity [1] Group 2: Employment and Orders - The employment index fell to 46.4%, marking the fourth contraction in the last five months, indicating a decline in labor demand [1] - The new orders index decreased from 51.3% in June to 50.3% in July, showing a slowdown in growth but remaining in the expansion zone [1] Group 3: Supply Chain and Inflation - The supplier deliveries index was at 51%, indicating delays in supply for the eighth consecutive month, which is typically a sign of increased economic activity [2] - The prices index rose to 69.9%, the highest level since October 2022, reflecting ongoing inflationary pressures faced by businesses [2] - The inventory index was at 51.8%, while the inventory sentiment index dropped to 53.2%, indicating a slight decrease in satisfaction with current inventory levels [2] Group 4: Industry Performance - In July, 11 service industries reported growth, with transportation and warehousing, wholesale trade, and finance and insurance showing the strongest performance [3] - Seven industries reported contraction, including accommodation and food services, construction, and mining [3] - Seasonal factors and weather changes were noted as negative impacts on business, alongside supply chain pressures due to transportation congestion [3]

Company - Amazon's founder Jeff Bezos plans to sell up to 25 million shares of Amazon stock within the next year, having established this trading plan on March 4. He remains the largest shareholder with a stake valued at approximately $4.8 billion [3] - ExxonMobil's CEO Darren Woods stated that the company has not yet seen substantial impacts from tariffs on its project development. The company reported first-quarter profits slightly above analyst expectations and achieved production growth. Woods mentioned that the company has initiated "comprehensive response measures" to manage the effects of tariffs, which have increased economic uncertainty and raised the risk of a slowdown [4] Industry - The healthcare sector led job growth in April, adding 51,000 positions. Transportation and warehousing added 29,000 jobs, while financial services contributed 14,000 jobs [3] - Average hourly earnings increased by 0.2%, below the expected 0.3%, with a year-over-year growth rate of 3.8%, which is 0.1 percentage points lower than anticipated, marking the lowest level since July 2024 [3] - OPEC+ is expected to hold a meeting on June production levels, with a significant increase in output anticipated. This has led to a decline in crude oil futures prices, with WTI futures dropping by 1.6% to $58.29 per barrel and Brent crude falling by 1.4% to $61.29 per barrel [4] - Gold prices saw a slight increase, reversing some losses, but still recorded a cumulative decline of 1.6% for the week, settling at $3,231.90 per ounce, marking the second consecutive week of decline [4]