• The US Federal Reserve cut the federal funds rate by 50 bps to 4.75-5.00% in its September meeting
• The People’s Bank of China announced several monetary stimulus measures to mitigate deflationary pressures
• Energy prices declined 7.1% in September as crude oil and coal prices moderated significantly

Services activity is expanding at a slower pace in most major economies (the United States, the Eurozone, the United Kingdom and Japan) as indicated by Purchasing Managers' Index (PMI) reading, which remain above 50 but are lower compared with August. In China, the National Bureau of Statistics PMI is showing a contraction in the services sector.

A sustained contraction in the services sector is worrisome for global economic growth as manufacturing activity is now contracting in all key economies except the United Kingdom.