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August 5, 2026
Private sector employment in the U.S. increased in July. Private sector employment rose by 44,000 jobs in July after climbing by a revised 95,000 jobs in June. Sector-level hiring was choppy last month, but pay sent a clear signal, with year-over-year pay for job-changers accelerating to its fastest pace of growth in nearly a year. Pay growth for job-changers rose to 7%, the largest year-over-year increase since August 2025, while pay gains for job-stayers held steady at 4.4%. Job-changers are highly sensitive to real-time economic conditions, and their rapid pay growth implies supply constraints in parts of the labor market. Typical hiring patterns, meanwhile, are changing as employers react to shifting macroeconomic conditions.
Small establishments added 23,000 jobs in July, while employment at large establishments rose by 13,000 jobs, and employment at medium establishments edged up by 8,000 jobs. On Friday, the Labor Department is scheduled to release its more closely watched report on employment in July. 08/05/2026 - 09:50:00 (RTTNews)
Euros traded at 1.1548 against USD at 9:00 AM PST
The euro area private sector expanded the most in eight months in July as output and new business rose for the first time since the start of the year. The final composite output index posted 52.0 in July, up from 50.0 in the previous month. The flash reading was 51.9.
July's overall expansion was broad-based, with services output growth combining with a sustained uplift in manufacturing production. The final services Purchasing Managers' Index (PMI) came in at 51.7, up from 49.4 in June and the flash score of 51.6.
Demand for euro area goods and services grew for the first time since February. Businesses continued to make backlog clearances, while employment stabilized following a six-month run of net job losses. Business optimism improved for a third month in a row. A further cooling of price pressures as rates of both input cost and output charge inflation dropped.
Among big-four economies, Germany posted its first rise in private sector output since March, while both Italy and Spain saw stronger rates of growth. Meanwhile, France's continued contraction made it an outlier.
Led by a marked rise in manufacturing output, Germany's composite output index climbed from 49.5 in June to 51.3 in July. The initial reading was 51.2. The services PMI advanced from 48.6 in June to 49.8. The flash score was 49.6.
France's private sector contracted in July, albeit at a softer pace than in June. The final composite output index registered 49.4 compared to 47.2 in June and the flash reading of 49.6. The services PMI advanced from 46.8 in June to 49.6 and remained slightly above the initial reading of 49.8.
Italy's private sector expanded at the fastest rate in eight months in July. The composite output index hit 52.5, up from 50.8 in June. The services PMI also posted 52.5 compared to 50.2 in the previous month.
Spain's private sector maintained its upward trend in July. The composite PMI climbed to a 19-month high of 56.5 from 53.3 in June. The services PMI posted 58.3, up from 54.2 in June. 08/05/2026 - 08:53:00 (RTTNews)
Eurozone producer prices declined for the first time in four months in June due to the fall in energy prices. Producer prices dropped by 0.3% monthly in June, in contrast to the 0.2% increase in May. This was the first drop since February. Excluding energy, producer prices were up 0.2% but slower than May's 0.7% increase.
Within the producer price index, only energy prices decreased from May by 1.5%. Prices of capital and durable consumer goods grew 0.2% each. Prices of intermediate goods were up 0.3%, while non-durable consumer goods prices remained flat. Yearly, producer price inflation eased to a three-month low from 5.9% in May of 4.6%. 08/05/2026 - 05:49:00 (RTTNews)
Singapore's retail sales rebounded at the end of the second quarter. Retail sales climbed 4.0% in June, faster than the 2.9% rise in May. Sales have been rising since February. Excluding motor vehicles, parts, and accessories, the annual retail sales growth accelerated from 3.6% to 4.1%.
Sales of recreational goods alone grew 11.4% from last year, and those of watches and jewelry were 10.5% higher. Sales of computer and telecommunications equipment increased 9.8%, and sales at petrol service stations advanced 8.0%.
Conversely, sales at department stores declined sharply by 9.5%, and demand for food and alcohol contracted 0.7%. Sales of wearing apparel and footwear were 1.7% lower. Online retail sales climbed 16.4% annually compared to 15.3% growth in May.
The index for total food and beverage sales fell 2.3% yearly in June, following a stable 0.1% rise in May. Monthly, retail sales increased 1.0% in June, reversing a 2.2% decrease in the prior month. 08/05/2026 - 03:45:00 (RTTNews)
China's services activity expanded at the weakest pace since September 2024 as new business moderated for the second month and optimism eased to the lowest in more than six years. China's services Purchasing Managers' Index (PMI) fell from 54.1 in June to 50.4 in July. Nonetheless, a score above 50.0 indicates expansion. Activity expanded every month since January 2023, but the score signaled the weakest growth since September 2024.
New business expanded in July, extending the current sequence of increases to just over three-and-a-half years. Services exports remained strong on higher overseas demand for exhibitions, study tours, increased settlement business, and effective management.
Despite the slowdown in new order growth, service providers continued to expand their workforces. Employment in the services sector grew for the third month straight. With sustained workforce growth, outstanding business grew at a slower pace. Business confidence regarding the twelve-month outlook remained positive, but the level reached its softest since February 2020.
Regarding prices, inflationary pressures eased further. Input price inflation softened from May's 19-month high to the weakest since January. Meanwhile, service providers raised their output charges, marking the first back-to-back price rise for a year-and-a-half.
The overall private sector growth hit the slowest in a year, reflecting softer gains in both manufacturing and services. The composite output index fell from 53.6 in June to 50.8 in July. 08/05/2026 - 03:25:00 (RTTNews)
This market update is prepared by Cathay Bank for informational purposes only and does not constitute any form of legal, tax or investment advice, nor should it be considered an assurance or guarantee of future exchange rate movements or trends. This information is provided without regard to the specific objectives, financial situations or needs of any recipient. Cathay Bank does not make any representations or warranties about the accuracy, completeness or adequacy of this market update.
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