Sainsbury’s, UK and US manufacturing PMI on the cards as July begins

Home UK Sainsbury’s, UK and US manufacturing PMI on the cards as July begins
Sainsbury’s, UK and US manufacturing PMI on the cards as July begins

The mid-week session marking the start of a new month will come with a flurry of economic data alongside a first-quarter update from well-followed grocery giant J Sainsbury PLC (LON:SBRY).

June manufacturing PMIs will be out for both the UK and US, and they should show some improvement on May's numbers based on last weeks flash figures.

The manufacturing sector has proved more defensive than others, however, analysts expect a muted rebound as services activity remains subdued, so backlogs of existing products need to be cleared before factories can restart fully-fledged.

Also in the US, the latest ADP private payrolls report is expected to show job gains of 2mln, while the Federal Reserve meeting minutes should offer insight into the discussions over various measures taken by the FOMC, including their concerns about a second coronavirus wave and the health of the US banking system.

“Fed chair Jay Powell expressed particular concern about inequality, which he said could continue for the next four decades, and that millions of people could be out of work for some time,” said David Madden from CMC Markets.

“Against such a dark outlook he went on to say that it wasnt the Feds role to care about asset prices and whether they were too high, saying the central banks main role was to support the US economy and keep the financial system afloat.”

Sainsburys counts its lockdown receipts

Supermarket giant Sainsbury's trading update will be the first outing for new chief executive Simon Roberts after former boss Mike Coupe exited on June 1 after six years at the helm.

Like most of Britains grocers, Sainsburys has seen a strong uplift in grocery sales as the nation was put into lockdown and consumers sought out more household goods as other outlets were shuttered.

The group has already guided for high single-digit percentage grocery sales throughout lockdown and single-digit percentages sales growth from late April onwards, alongside drops in its Argos and general merchandise businesses as consumers tighten their belts on spending for non-essential items.

Investors may also keep an eye out for any outlook statements are the supermarket has given little away for the rest of 2020-21 due to uncertainty over the coronavirus pandemic.

Significant announcements expected for Wednesday July 1:

Trading announcements: J Sainsbury PLC (Read More – Source

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