Latest news with #AndrewHarker
Yahoo
3 days ago
- Business
- Yahoo
Canada's services PMI rises to eight-month high in July as business confidence improves
TORONTO (Reuters) -The downturn in Canada's services economy eased in July as the pace of decline in new business activity slowed and firms grew more optimistic about the outlook for activity, S&P Global's Canada services PMI data showed on Wednesday. The headline Business Activity Index rose to 49.3 last month from 44.3 in June. That marked the highest level since November but still indicated a deterioration in activity. A reading below 50 shows contraction in the sector. 'The latest S&P Global Canada Services PMI provides reasons for hope that the challenging period faced by companies may be easing off," Andrew Harker, economics director at S&P Global Market Intelligence, said in a statement. The U.S. has increased tariffs on Canadian goods to 35% from 25%, but products covered by the U.S.-Mexico-Canada Agreement are exempt from duties. About 90% of Canadian exports to the U.S. in May were exempt under that trade agreement. The new business index rose to 48.7 last month from 46.6 in June, while the measure of future activity was at 60.9, up from 54.9, amid hopes for more stable market conditions. Some firms expected next year's FIFA World Cup soccer tournament to provide a boost. 'A jump in business confidence and another month of hiring suggests that firms may be gearing up for a return to growth in the near future, something which is sorely needed given the difficulties faced by companies over the first half of the year,' Harker said. The S&P Global Canada Composite PMI Output Index rose to 48.7 last month from 44.0 in June, posting its highest level since January. Data on Friday showed that Canada's manufacturing sector contracted for a sixth straight month in July. The S&P Global Canada Manufacturing PMI edged up to 46.1 in July from 45.6 in June. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Arab News
4 days ago
- Business
- Arab News
Kuwait, Qatar, UAE maintain non-oil growth momentum; Egypt shows recovery signs while Lebanon struggles
RIYADH: Non-oil business activity in the Middle East showed mixed trends in July, with Kuwait, the UAE, and Qatar maintaining strong growth while Egypt demonstrated signs of recovery and Lebanon remained under pressure. According to the latest Purchasing Managers' Index report released by S&P Global, Kuwait's PMI ticked up to 53.5 in July from 53.1 in June, signalling a solid monthly improvement in the health of the non-oil private sector. This robust performance of non-energy business conditions in Kuwait aligns with the wider trend observed in the Gulf Cooperation Council region, where countries are pursuing economic diversification efforts to reduce dependence on crude revenues. 'Kuwait's non-oil private sector began the second half of 2025 in much the same way as it ended the first, with output and new orders up markedly again in July,' said Andrew Harker, economics director at S&P Global Market Intelligence. Survey panelists linked higher new orders in July to advertising efforts and price discounting, which helped to further raise the output. According to the report, employment levels in Kuwait's non-oil sector remained broadly unchanged in July, following a record increase in June. S&P Global added that inflationary pressures softened in the seventh month of the year, with purchase prices and staff costs increasing at the slowest rates in six and four months, respectively. 'Firms will have been cheered by a softening of inflationary pressures during the month, but the reluctance to hire extra staff did mean that backlogs of work accumulated again,' said Harker. The survey data also revealed that Kuwaiti companies remained strongly optimistic about future growth, on the hopes that output will rise further in the remaining months of the year. 'The prospects for further expansions in new business in the months ahead appear bright, and we'll hopefully see this reflected in renewed hiring activity soon,' added Harker. UAE's PMI declines amid geopolitical tensions UAE's PMI slipped to 52.9 in July from 53.5 in June but remained well above the 50 mark that signals expansion of the non-energy business conditions. S&P Global attributed this decline to a slowdown in new business growth across the non-oil economy, as ongoing regional tensions made some clients hesitant to commit to new spending. Panelists who took part in the survey also pointed to weaker tourism activity and headwinds from global trade disruptions to lower activities in July. Despite this decline, output expanded sharply in June, as non-oil firms in the Emirates sought to prevent further increases in backlogs of work. 'Business conditions improved in July, but the rate of growth was the weakest since the middle of 2021. As has been the case recently, output was supported by positive demand trends,' said David Owen, senior economist at S&P Global Market Intelligence. He added: 'New order volumes helped firms to expand, but this trend is declining, with the latest data indicating the softest rise in incoming new work in almost four years.' The softer increase in new orders contributed to a slight easing in the rate of activity expansion in July, which was further dampened by intensified competitive pressures The report also revealed that some firms reported that output increased in response to new sales opportunities, rising client incomes, advancements in technological investment, and the clearance of pending work. The July survey data indicated that job growth softened in over the month, marking the weakest uplift in four months. 'Should regional tensions ease, we may see a recovery in sales growth in the coming months. This would also be supported by the subdued price environment, with input costs rising only modestly despite the pace of increase reaching a three-month high,' said Owen. He added: 'Nevertheless, the ongoing trends of rising competition, limited inventory, constrained hiring growth and relatively low confidence among surveyed firms suggest that downside risks remain elevated.' In the same report, S&P Global revealed that Dubai's PMI rose to 53.5, up from a 45-month low of 51.8 in June, signalling a solid upturn in operating conditions across the Emirate's non-oil private sector economy. Dubai non-oil firms also expanded their output at the sharpest rate in five months in July, while continuing efforts to increase employment and inventories. Non-energy business conditions improve in Qatar In a separate report, S&P Global revealed that business conditions in Qatar's non-energy sector continued to improve in July, with the country's PMI remaining above the 50-expansion zone for the 19th consecutive month. The country's PMI fell to 51.4 in July from 52 in June. The report revealed that non-energy private sector employment in Qatar increased at the second-strongest rate in the eight-year survey history, driving a further sharp increase in wages. 'The PMI remained above the neutral threshold at 51.4 in July, signalling sustained overall growth in the non-energy private sector. But the headline figure continues to mask underlying weakness in demand and output, being heavily supported by another round of strong employment growth,' said Trevor Balchin, economics director at S&P Global Market Intelligence. Companies in the non-energy private sector remained optimistic regarding the 12-month outlook for activity in July, due to expected growth in investment, tourism, and industrial development, as well as a recovery in construction, population expansion, and government initiatives. Egypt's PMI nearing growth trajectory In another report, S&P Global revealed that Egypt's PMI increased to 49.5 in July, up from 48.8 in June, but still remaining below the 50 no-change threshold for the fifth consecutive month. According to S&P Global, Egyptian non-oil business conditions deteriorated for the fifth consecutive month in July, although the decline was less severe than in June, with firms reporting softer contractions in both activity and new orders. The report added that businesses increased headcounts for the first time since last October, while cuts in purchases softened. 'Although the Egypt PMI stayed below 50 in July, indicating a worsening of non-oil business conditions, the latest survey data provided some cause for optimism. Several firms reported the securing of new work, which helped to soften the rate of decline in sales,' said Owen. He added: 'Businesses also had the confidence to hire new staff, leading to an increase in employment for the first time in nine months, if only a fractional one.' Input prices also rose at a slightly quicker pace in July, with survey panelists attributing this trend to higher costs for items such as cement, fuel and packaging. Increased staff wages also contributed to cost pressures, although the rate of growth was mild. Regarding future activity, companies in Egypt continued to express concerns about demand strength and broader economic uncertainty, with optimism improving slightly from June's record low. Lebanon's PMI drops According to the latest report, Lebanon's private sector economy remained under pressure at the start of the second half of the year, with the PMI in July dropping to 48.9 from 49.2 in June. The report revealed that business activity volumes across Lebanon's private sector fell further in July, extending the current sequence of contraction to five months, driven by subdued demand conditions, particularly from abroad. 'The July 2025 BLOM Lebanon PMI dropped to 48.9. This result was not unexpected as the economy lacked any meaningful demand stimulus: the government does not have any money to spend and the private sector is not able and willing to spend,' said Ali Bolbol, chief economist and head of research at BLOMInvest BANK. Private sector companies in Lebanon lowered their purchasing volumes as a part of their efforts to reduce costs. Looking ahead, surveyed companies remained pessimistic toward the year-ahead outlook for business activity, with these firms expressing negative consequences of a potential escalation of conflict and tensions across the Middle East region.
Arab Times
4 days ago
- Business
- Arab Times
Kuwait PMI rises to 53.5 in July, signaling an improved business environment
KUWAIT CITY, Aug 5: The Purchasing Managers' Index (PMI) for Kuwait rose to 53.5 in July, up from 53.1 in June, marking a notable improvement in the non-oil private sector's performance. This increase reflects strengthened business conditions and continued expansion for the 11th consecutive month, according to the latest data released by S&P Global Ratings on Tuesday. The PMI, a composite indicator tracking the performance of Kuwait's non-oil private sector, showed that the sector has remained firmly in growth territory throughout July. The improvement was driven by a sharp acceleration in new orders, which helped extend the expansion period that began in February 2023. The key driver of the recent PMI increase was a significant rise in new orders, signaling that demand for goods and services continues to grow. Despite the surge in new orders, employment levels remained steady, following a record high in the previous month. This stability in workforce numbers was largely attributed to companies' cautious approach to hiring, with some firms reluctant to take on additional staff due to cost concerns and efforts to complete ongoing projects on time. While new export orders saw growth, the pace of expansion slowed to a three-month low, with businesses attributing the increase to advertising efforts and price discounts. Inflationary pressures showed signs of easing at the beginning of the third quarter, which was welcomed by businesses. However, the increase in new orders led to a resurgence in backlogs, as companies struggled to meet demand while maintaining stable staffing levels. Despite the rise in backlogs, the pace of increase remained modest and the weakest observed since January. In response to heightened competition, many firms were forced to implement price cuts to secure new orders. These efforts helped to contain input costs and limit the extent to which higher costs were passed on to customers. Looking ahead, companies remained optimistic about future business prospects, with many expecting production to increase over the next year. However, confidence levels in the near term dipped to a three-month low, primarily due to the slow pace of hiring. Firms are focusing on diverse marketing strategies, including the use of digital channels, to maintain their competitive edge and support long-term growth. Andrew Harker, Director of Economics at S&P Global, commented on the survey results, stating that Kuwait's non-oil private sector began the second half of 2025 similarly to how it finished the first half, with strong growth in output and new orders. He highlighted that while employment remained largely unchanged, the sector's continued expansion is promising for future business growth. Harker also noted that companies were relieved by the easing of inflationary pressures but pointed out that hesitation to hire had led to an increase in backlogs of work. He expressed optimism that the ongoing growth in new business would eventually lead to a renewed hiring trend. The July PMI results for Kuwait's non-oil private sector reflect a period of sustained growth, driven by an increase in new orders and overall business activity. While inflationary pressures have eased, challenges remain in terms of staffing and managing backlogs. Looking forward, there is cautious optimism that the sector will continue to expand, with increased hiring expected in the coming months.
Fibre2Fashion
5 days ago
- Business
- Fibre2Fashion
Vietnam manufacturing grows despite US tariff-hit exports: S&P Global
Vietnam's manufacturing sector returned to growth in July, buoyed by a rebound in domestic demand, even as export weakness persisted due to US-imposed tariffs. The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) rose sharply to 52.4 in July from 48.9 in June, moving back above the neutral 50 threshold for the first time in four months and marking the strongest improvement in business conditions in nearly a year. The upturn was driven by renewed growth in new orders, which expanded at the fastest rate since November last year. Companies linked the rise in new business to improving customer demand, though they noted that US tariffs continued to weigh heavily on exports. Overseas orders contracted for a ninth consecutive month. "July PMI data suggested that the Vietnamese manufacturing sector is getting back on its feet following the disruption caused to operations by the US tariff announcements in recent months. Although tariffs continued to cause reductions in new export orders, firms were able to secure enough business elsewhere that total new orders returned to growth,' said Andrew Harker, economics director at S&P Global Market Intelligence. Stronger domestic demand supported a marked increase in output, which rose for the third straight month and at the quickest pace in 11 months. This production growth spurred a rebound in purchasing activity, which expanded at its fastest rate since August 2024, S&P Global said in a press release. However, firms continued to report difficulties sourcing raw materials, especially from overseas suppliers, leading to supplier delivery delays and further depletion of input inventories. Although input buying rose, stocks of purchases declined once again, though the pace of depletion was the slowest since December 2023. "A key feature of the latest survey was the impact of difficulties sourcing raw materials. Firms linked this to widespread supplier delivery delays, declining stocks of purchases and building cost pressures. If material supplies continue to cause issues in the months ahead then we may see limits to the growth rates that can be achieved by the sector," Harker added. Employment levels neared stabilisation, as manufacturers responded to higher production needs. Although staffing continued to decline due to existing spare capacity, the rate of job losses was the weakest in nine months. Backlogs of work fell again, extending the current depletion trend to seven months, albeit at the slowest rate during that period. Input costs rose for the second consecutive month, with the latest increase the steepest seen so far in 2025. Material shortages and rising import costs contributed to the rise in input prices, which in turn prompted manufacturers to raise output charges. Selling prices increased at the fastest pace in seven months, though the rate of inflation remained modest overall. Business sentiment dipped to a three-month low in July and stayed below the series average. While firms remained hopeful for output growth in the year ahead—citing expectations for more stable economic conditions, new product introductions and recovering demand—concerns around the prolonged impact of US tariffs continued to dampen overall confidence. Vietnam's manufacturing sector returned to growth in July as the PMI rose to 52.4, driven by a rebound in domestic demand. New orders expanded despite US tariffs hurting exports for a ninth month. Output and purchasing grew sharply, job cuts eased, and input costs surged due to raw material shortages. However, sentiment dipped to a three-month low amid ongoing trade concerns. Fibre2Fashion News Desk (HU)
Asharq Al-Awsat
01-08-2025
- Business
- Asharq Al-Awsat
Turkish Manufacturing Sector Contracts Further in July, PMI Shows
Türkiye's manufacturing sector lost further momentum in July, with muted demand leading to pronounced slowdowns in new orders and output, a survey showed on Friday. The Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers' Index (PMI), fell to 45.9 in July from 46.7 in June, marking the third consecutive monthly decline and the most pronounced moderation since October 2024. PMI readings above 50.0 indicate growth in activity, while those below point to a contraction. Business conditions have now eased for 16 consecutive months, underscoring persistent challenges in the sector. A key theme of the latest survey was subdued customer demand and in turn new orders easing the most since March, the survey showed, while international demand also remained weak. Consequently, manufacturers scaled back production while employment and purchasing activity were reduced, and efforts were made to limit inventory holdings, the panel showed. Stocks of purchases eased to the largest degree since October 2024, while stocks of finished goods were markedly depleted following a slight rise in June. Currency weakness continued to drive sharp increases in input costs while selling prices rose at a slightly faster pace than in June. "There was little in the way of positive news from the latest Türkiye manufacturing PMI as the challenges for firms in securing new orders percolated through the sector," said Andrew Harker, Economics Director at S&P Global Market Intelligence. "Manufacturers will be hoping to see some pick-up in demand conditions as the second half of the year progresses."
