Latest news with #BusinessActivity
France 24
6 days ago
- Business
- France 24
German factory orders fall amid tariff, growth woes
New orders, closely watched as an indicator of future business activity, dropped 1.0 percent month-on-month, according to preliminary data from federal statistics agency Destatis, after a fall of 0.8 percent in May. Analysts surveyed by financial data firm FactSet had expected a rebound of 1.3 percent in June. Orders from abroad fell three percent, with a particularly heavy drop from countries outside the eurozone, while domestic orders increased slightly. There were big falls for orders from the crucial automotive sector, of transport equipment such as trains and ships as well as metal products. The economy ministry said that big swings in orders were no surprise "given the persistent high level of trade and geopolitical uncertainty". "The industrial economy is likely to be characterised by subdued foreign demand in the future in light of what are now likely to be permanently higher tariffs on exports to the United States," it added in a statement. EU exports to the United States have already faced tariffs of varying rates for several months. Under a deal struck between the bloc and US President Donald Trump last month, they are set to face across-the-board levies from August 8 of 15 percent, which will hit export power Germany hard. The German economy shrank for the past two years and the government's latest forecast, released in April, predicted zero growth for 2025 due to the impact of tariffs. Some institutes have, however, recently upgraded their forecasts to slight growth for this year, seeing signs that the downturn has bottomed out.
Reuters
7 days ago
- Business
- Reuters
Euro zone business growth inched up in July but remained subdued, PMI shows
LONDON, Aug 5 (Reuters) - Business activity in the euro zone grew at a slightly faster pace in July than in June but remained sluggish as demand dipped, a survey showed on Tuesday. The HCOB Eurozone Composite Purchasing Managers' Index, compiled by S&P Global, edged up to 50.9 in July from 50.6 in June, just below a preliminary estimate of 51.0. PMI readings above 50.0 indicate growth in activity while those below point to a contraction. July's reading marked a four-month high but was still below the survey's long-term average of 52.4, reflecting persistent weakness in the 20-country currency bloc. Services activity expanded at a slightly faster rate with the sector's PMI climbing to 51.0 from 50.5 in June. "This could turn out to be a good summer for service providers. In Italy and Spain, business activity rose more sharply in July than in the previous month, while Germany, after several challenging months, has clawed its way back into growth territory," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. Overall new orders remained virtually unchanged, continuing a trend seen in June, while export sales contracted for the 41st consecutive month, acting as a persistent drag on growth. The composite new business index nudged up to 49.8 from 49.7. Among the bloc's largest economies, Spain led the way with the strongest expansion, followed by Italy. Germany, the region's biggest economy, recorded only modest growth, however. France was the only major euro zone economy to contract, with its PMI falling from the previous month, marking the 11th straight month of decline. Despite sluggish demand, the bloc's firms added jobs for a fifth consecutive month in July. The pace of job creation, while still modest, reached its fastest rate in over a year. Business confidence dipped for the first time since April, falling further below its long-term average as sentiment weakened across both manufacturing and services sectors. Cost pressures eased to their lowest level since October last year, primarily driven by the services sector, while output price inflation increased marginally to a three-month high. The services input prices index fell to 56.5 from 58.1. "Inflation is easing in the euro zone's services sector, increasing the likelihood of one further interest rate cut by the European Central Bank in the second half of the year," de la Rubia added. The ECB left interest rates unchanged in July but is expected to make one further cut this year, according to a July Reuters poll.
Times of Oman
7 days ago
- Business
- Times of Oman
India's service PMI up marginally to 60.5 in July, but job creation slows to 15 month low: HSBC PMI
New Delhi: India's services sector continued to expand in July, although employment growth slowed to its weakest pace in 15 months, according to the HSBC India Services PMI released on Tuesday. The seasonally adjusted HSBC India Services PMI Business Activity Index stood at 60.5 in July, slightly up from 60.4 in June. This signals a strong rise in output and marks the highest rate of expansion since August 2024. HSBC report stated "At 60.5 in July, the seasonally adjusted HSBC India Services PMI® Business Activity Index - based on a single question asking how the level of business activity compares with the situation the month before - was little-changed from 60.4 in June and therefore signalled another sharp increase in output.... July's increase in employment was the slowest in 15 months, despite strengthening business confidence". The rate of job creation was only slight and aligned closely with its long-run average. Less than 2 per cent of companies hired new staff, with the majority reporting no change in their workforce compared to June. The growth was driven by steady improvements in demand for Indian services, which supported increases in total new orders, international sales, and output. Indian service providers reported receiving new work from Asia, Canada, Europe, the UAE, and the US. The rate of growth in external sales was sharp and recorded as the second-fastest in a year, just behind May. Among the sectors, Finance & Insurance led in terms of both new orders and overall business activity. On the other hand, Real Estate & Business Services showed the slowest pace of growth. Firms remained optimistic about future business activity, but expectations were mixed. Business confidence was positive overall, yet showed some signs of softening. Meanwhile, inflationary pressures were more visible in July. Both input costs and output charges rose at faster rates than in June, with output price inflation surpassing its long-run average. The HSBC India Composite PMI Output Index, which tracks combined activity in the manufacturing and services sectors, rose marginally from 61.0 in June to 61.1 in July. This indicates a sharp expansion in private sector activity, the strongest since April 2024. The composite data revealed that sales growth reached a 15-month high. However, firms downgraded their future growth expectations. The report also indicated that the Future Output Index fell to its lowest level since March 2023. As a result, private sector hiring was also impacted, recording the weakest increase in employment in 15 months.
