Daily Economic Outlook: 9th September, 2015

Speeches from Fed Chair Yellen and St Louis Fed President Bullard, after the close of markets, will also be scrutinised for indications of timing of a rate rise, with the Chair's most recent comments still pointing to the prospect of a move in 2015. Meanwhile, following the weakness seen in Spanish and German inflation releases yesterday, the aggregate Eurozone inflation reading is likely to fall back below zero, potentially adding to calls for an early expansion of the ECB's QE programme.

With volatility in global markets continuing to provide a backdrop for the Federal Reserve's debate on monetary policy liftoff, today's ADP employment data - in advance of the bellwether US labour market report on Friday - are expected to provide some reassurance that employment trends in September still remained solid, says Lloyds Bank.

Domestically, the 3rd estimate of GDP data for Q2 is likely to provide the market focus. Although the economy's growth rate for Q2 is not expected to be revised, the annual Blue Book revisions process in this release will change the profile of GDP growth back to 1997. While the most recent GDP revisions have given the MPC confidence that productivity growth is recovering, any signs of softer growth in 2014 would conversely suggest stronger underlying cost pressures for the MPC's upcoming Inflation Report projections, adding to the case for a rate rise earlier than currently priced by markets.