Daily Economic Outlook: 23rd September, 2015

As speculation mounts that the ECB may be leaning towards an expansion of its QE programme, markets will focus on this morning's preliminary eurozone PMI reports and President Draghi's appearance at the European Parliament's Economic and Monetary Affairs Committee  at 14:00BST. 

A slight fall in both the manufacturing and services PMI for the eurozone is expected to 52.1 and 54.2, respectively, foresees Lloyds Bank. These figures, however, would remain above the key 50 level separating growth and contraction and suggest that activity is holding up relatively well despite recent rises in global economic and financial uncertainties. Nevertheless, downside risks to growth and inflation have risen and may prompt further dovish comments from Mr Draghi this afternoon, especially in light of the US Federal Reserve's decision to leave policy rates unchanged last week. 

Central bank speakers are also very much the focus outside of the eurozone. The Bank of England MPC's Broadbent is scheduled to speak on the UK labour market at 17:00BST, while Atlanta Fed's Lockhart (voter) is scheduled to speak on the US economy at 17:30BST. Other ECB speakers today include Bundesbank President Weidmann at 17:00BST who could provide a less dovish message than Mr Draghi.