Growth in America’s manufacturing sector slowed in September according to Markit’s flash PMI.

The index slipped to 51.4 from 52 in August, where anything above 50 signals expansion.

Tim Moore, Senior Economist at IHS Markit:

Despite the growth setback in September, manufacturers appear reasonably upbeat about their longer-term prospects. Reflecting this, job creation rebounded since August and input buying continued to expand at a notably faster pace than seen during the first half of the year.

At the same time, overall cost inflation remained marginal and this provided some headroom to stimulate client spending through price discounting.

The pound hit a five-week low against the dollar, falling more than 1% to $1.2938.

It is currently down 0.9% at $1.2951.

US markets are down in early trading:

• Dow Jones: -0.1% at 18,374

• S&P 500: -0.2% at 2,172

• Nasdaq: -0.2% at 5,328

We have the first inkling that the sharp drop in the pound following the June Brexit vote is encouraging more overseas visitors.

Some 3.8 million people visited Britain from other countries in July, the highest monthly total on record and 2% more than a year earlier according to the Office for National Statistics.

Visitors spent 2% more this July compared with a year earlier, at £1.79bn on a seasonally adjusted basis.

The pound’s sharp fall makes British goods and services cheaper for people visiting from other countries.

Meanwhile the figures also revealed British holidaymakers’ cut their spending overseas in July.

Read our full story:

George Osborne has praised Jim O’Neill, the former chief economist of Goldman Sachs who resigned today as a Treasury minister.

O’Neill was part of the Treasury team when Osborne was chancellor.

This is what Jim O’Neill told Theresa May in his resignation letter:

Dear Prime Minister,

I have decided to resign as a minister in the government.

This morning I returned from New York where I had the pleasure of witnessing the UN high level agreement on antimicrobial resistance (AMR) which is essentially the end goal of the Review that I was asked to lead ion the spring of 2014. This part of my role in government has come to its natural end, although of course, I was asked initially to lead the Review, independent of government.

Leading this Review has been one of the most stimulating roles I have ever undertaken and I am grateful to all those involved, especially my Review team, and all those across government that allowed the UK to take such a global leadership position in this key threat to the world. It goes without saying that our success is symbolic of the way that the UK can be influential in a post Brexit world.

I joined the government with the AMR Review already well developed in terms of our ideas and influence, but entered office believing its goals would be enhanced by being a Minister. I primarily joined however for the specific purpose of helping deliver the Northern Powerhouse and to help boost our economic ties with key growing economies around the world, especially China and India and other rapidly emerging economies.

The case for both to be at the heart of British economic policy is even stronger following the referendum, and I am pleased that, despite speculation to the contrary, both appear to be commanding your personal attention. I am leaving knowing that I can play some role supporting these critical initiatives as a non-governmental person.

I look forward to moving to the cross benches of the Lords, and wish you every success with the exciting challenges and opportunities ahead, and thank you for allowing me the privilege to serve in government.

Yours sincerely,

Jim O’Neill

Jim O’Neill, the former Goldman Sachs chief economist who coined the phrase “Brics”, has resigned from the Treasury.

He was appointed in May 2015 as part of George Osborne’s Treasury team, and was a key proponent of the Northern Powerhouse. He was also made a Conservative life peer.

O’Neill grew up in Gatley, on the southern outskirts of Manchester, and is probably best known for coming up with the phrase “Brics” to describe the rapid economic rise of Brazil, Russia, India and China, in 2001.

The FT’s Jim Pickard says O’Neill has resigned for a number of reasons, including Theresa May’s desire to expand grammar schools.

Thee pound has dipped below $1.30, currently down 0.6% at $1.2996.

It is also down 0.7% against the euro, at €1.1591.

The Co-operative Group’s pre-tax profit more than halved in the first half of 2016 to £17m, but it insisted its three-year turnaround plan was on track.

Profits were held back by its investment in a large-scale rebranding of its grocery stores and funeral homes as it attempts to move on from darker times when the banking arm almost collapsed in 2013/14.

Profits were also reduced pay rises for frontline staff and price cuts at its supermarkets.

The group has also written down the value of its investment in the Co-operative Bank by £45m. It now owns just 20% of the bank, after parts of the division were sold off in response to a £1.5bn black hole.

The pain of the past - exacerbated considerably the drugs scandal that engulfed the former chairman of the banking division, Paul Flowers - has triggered a rebrand.

The Co-op Group has looked back to its roots to move forward, scrapping its lime-green shop frontages and replacing them with the group’s blue cloverleaf-like design, first introduced in 1968.

And finally for the flash PMIs, this morning the eurozone-wide survey suggested growth edged lower in September.

The composite index edged down to a 20-month low of 52.6 from 52.9 in August. The manufacturing sector was stronger than services in the single currency bloc.

Rob Dobson, senior economist at IHS Markit said:

The eurozone economy ended the third quarter on a disappointing note, with its rate of expansion easing to a 20-month low in September.

While the underlying picture remains one of sluggish growth of close to 0.3% over the quarter as a whole, it also remains clear that the economic upturn is still fragile and failing to achieve any real traction. Job creation is wavering as a result, with employment rising at the slowest pace since April.

Slower growth in the German power house and elsewhere in the currency union suggest the upturn will remain uneven by country heading into the final quarter.

Over in Germany, there are signs that the private sector is losing momentum...

A combination of manufacturing and services PMIs for Germany showed output grew at the slowest rate in 16 months in September, held back by the services sector.

The flash composite index fell to 52.7 from 53.3, disappointing economists’ expectations.

The services sector grew at the slowest rate in more than three years, edging close to stagnation. The manufacturing sector fared better, growing at the fastest rate in three months in September.

Oliver Kolodseike, economist at IHS Markit said:

The upturn in Germany’s private sector economy is losing further momentum, with latest survey data pointing to the slowest expansion in output for nearly one-and-a-half years.

A big concern is the divergent trends within the economy, with service provides struggling to eke out any meaningful growth.

Today’s survey data are a clear indication that German economic growth has slowed in the third quarter. While further GDP growth is expected, it is highly unlikely that the 0.7% rate seen at the beginning of the year will be repeated.

Growth might have been revised down for the second quarter, but the latest snapshot from the French economy suggests the private sector was in better-than-expected shape in September.

Markit’s flash French services PMI increased to 54.1, from 52.3 in August, where anything above 50 indicates expansion. It was a 15-month high, and better than the 52 predicted by economists.

The French manufacturing sector shrank again in September, but not as much as August. The flash indicator picked up to 49.5 from 48.3.

Combined, the two surveys indicated the private sector was in decent shape at the end of the third quarter. The composite index increased to a 15-month high of 53.3 in September, from 51.9 in August.

This will boost hopes that the wider economy fared better in the third quarter than the second.

Jack Kennedy, senior economist at IHS Markit said:

French private sector output growth strengthened at the end of the third quarter, reaching its joint- fastest pace in over five years.

That was thanks to an improved performance from the dominant service sector, offsetting manufacturing stagnation. The data raise hopes of a firmer GDP print for the third quarter after growth ground to a halt in Q2.

Bad news for France, as growth for the second quarter is revised down to -0.1%, piling further pressure on President Francois Hollande ahead of the French election next spring.

The French statistics office, INSEE, had previously estimated zero growth between April and June, following 0.7% growth in the first quarter of the year.

It is the first time Europe’s second largest economy contracted since the first quarter of 2013, and the slowdown was driven by a sharp drop in inventories. Household spending dropped 0.1%, while trade contributed 0.6%.

It’s red across the board this morning, with all major European indices down.

The feel-good factor from the Fed’s decision on Wednesday to hold rates is fading.

The FTSE is off 21 points or 0.3% at 6,890.

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Big news this morning from the retail world. Mike Ashley, the embattled founder of Sports Direct, has been appointed chief executive of the retailer with immediate effect. His previous role at the company was

It comes at a time when the company is under intense pressure over corporate governance and the way it treats its workers.

The retailer has caved in to calls from MPs and shareholder groups to hold an independent inquiry into working practices, which were highlighted following a Guardian investigation.

Ashley replaces his good pal and long-standing business partner, Dave Forsey, who resigned on Thursday according to the retailer in a statement this morning.

Here is what they both had to say:

Mike Ashley

I feel like I have lost my right arm, but I do hope to have the opportunity to work with Dave again in the future.

Dave Forsey

I have given my entire working life to the company and in return the company has given me amazing opportunities and experiences. I wish everyone at Sports Direct well in the future.

Read the full statement here. We will bring you developments and reaction throughout the day.