GEW October 5, 2009

EUR: Volume of Retail Sales fell 0.2%mom in August to be down 2.6% over the year. Increase in sales was led by food, drinks and tobacco, which rose 0.5%mom, even as retail sales excluding autos were also as much lower as headline sales in August. Sales of non-food products fell 0.6% over the month. Retail sales in Germany were down 1.5%mom in August and still depressed by 2.7% over the year.

USA: The ISM Non-Manufacturing Index rose 2.5 points to 50.9 in September, above market expectations of 50, and the first time in a year that the index recorded an expansion. The Business Activity Index rose to 55.1 from 51.3 in August, the second straight month that the index has shown expansion as eight of the 18 industries reported an increase in business activity. New orders rose 4.3 points to 54.2, the highest since October 2007 and the Employment index nudged up 0.8 points to 44.3 as three of the 18 industries reported an increase in employment to take the index to its highest since October last year, but still in a contraction - the 20th in 21 months. Prices charged fell sharply by 14.3 points to 48.8 in September with only six of the 18 industries reporting an increase in prices paid. Overall, only five of the 18 industries in the headline index namely, utilities, health care, housing, retailing, and construction expanded in September.