The private sector workforce is growing conservatively, amid a potential slowdown in the US economy. Automatic Data Processing Employment Change AS Aug. recorded that the private sector only absorbed 132K (Vs. Surv. 300K; Jul. 268K). After US GDP QoQ experienced a Technical Recession (2Q22 -0.6%; 1Q22 -1.6%), the private sector is still closely watching a number of economic indicators. Meanwhile, Cleveland Federal Reserve Bank President Loretta Mester’s statement on Wednesday that the Fed needs to increase its FFR slightly above 4% in order to suppress inflation on target, investors responded negatively again. Wall Street closed lower, after strengthening in early trading on Wednesday local time.

Indonesia experienced a deflation in August, according to a Bloomberg survey. Wait and see of the government’s subsidized fuel policy, caused the JCI to break through the lower limit of 7,100 at the start of trading. Investors are waiting for the decision to increase the price of subsidized Pertalite and Diesel fuel, which will have an impact on production costs. Meanwhile, external sentiment still comes from the potential of the Fed’s aggressive Hawkish on the FFR hike in September. Meanwhile, the decline in a number of food commodity prices and the absence of an increase in Administered Prices made August MoM projected to record -0.10% deflation (Vs. Jul. +0.64%). NHKSI Research projects that JCI will move within the range of Support: 7,160- 7,130/7.080-7,070/7.015-7,000/6,950-6,930 and Resistance: 7,200-7,230.

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