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Yahoo
06-08-2025
- 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
Irish Independent
06-08-2025
- Business
- Irish Independent
Services sector slowdown worsened in July, report finds
The data is drawn from 400 companies across a range of service sectors – from banking to hotels – and is collected in the second half of each month. A reading above 50 on the index indicates an overall increase, while a reading below 50 shows a decrease in comparison to the previous month's results. The seasonally adjusted Business Activity Index dipped to 50.9 last month, down from 51.5 in June, signalling only marginal growth and marking the third softest increase since March 2021. AIB chief economist David McNamara said data for July shows a further easing in growth in the sector. 'This marks the slowest pace of growth since January 2024, driven by softer output, new business and hiring activity,' he said. Only three out of the four monitored sub-sectors recorded growth in July. Technology, media and telecoms (TMT) led the pack with a reading of 52.2, though its pace of expansion has also slowed significantly. Business services and financial services both posted modest growth at 51.6, while transport, tourism and leisure declined for the fifth month in a row, with a score of 47.0, pointing to contraction. International demand offered only a slight reprieve, with export trading improving marginally, recovering from June's contraction, but remained weak overall. Despite sluggish sales, employment in the sector edged up for a sixth straight month, although hiring momentum faded, with job growth the weakest in that period and below the long-term average. Cost pressures showed signs of easing, offering some relief to service providers. Input price inflation was the joint-lowest in over four years, with TMT firms reporting the softest cost pressures during the latest period while transport, tourism and leisure reporting the strongest. Prices charged by companies rose at the same modest rate as June, with it is still the lowest in over four years, reflecting competitive pricing in a subdued market. Sentiment among Irish services remained firm. 'Despite weak current activity level, firms in the Irish services sector remained optimistic on the prospect of improved business in the coming 12 months,' Mr McNamara said. This optimism is driven by expectation of future infrastructure-related investments, though with caution due to the instability in today's markets.
Business Upturn
03-07-2025
- Business
- Business Upturn
India's services sector growth hits 10-month high in June as demand strengthens
By Aditya Bhagchandani Published on July 3, 2025, 10:49 IST India's services sector saw robust expansion in June 2025, with business activity rising at its fastest pace in 10 months, driven by strong domestic demand and improving export orders. The HSBC India Services PMI® Business Activity Index climbed to 60.4, up from 58.8 in May, according to the latest survey by S&P Global. A reading above 50 indicates expansion. Service providers reported the sharpest rise in new orders since August 2024, supported by solid growth in both domestic and international markets, particularly from Asia, the Middle East, and the US. Notably, the pace of export growth was among the strongest since records began, though slightly lower than in previous months. Price pressures continued to ease, with input and output price inflation softening to a 10-month low. Employment in the sector grew for the 37th consecutive month, although the pace of job creation moderated from May's record levels. Finance & Insurance led sectoral growth in June, while Real Estate & Business Services lagged behind. On the outlook, service providers remained optimistic about future growth, though overall confidence dipped slightly compared to previous months. Key highlights: Business Activity Index rose to 60.4 in June (58.8 in May) New orders increased at the fastest rate in nearly a year Export orders strong, despite a slight slowdown from May Input cost inflation at a 10-month low; firms maintained pricing power Job creation continues, though at a slower pace Finance & Insurance sector remains the top performer According to Pranjul Bhandari, Chief India Economist at HSBC: 'The Services PMI business activity index was up to a ten-month high, led by a sharp rise in new domestic orders. Margins improved as the rise in input costs was below that seen for output charges.' The data reflects broad-based resilience in India's private sector, with the HSBC India Composite PMI Output Index — combining manufacturing and services — also reaching a 14-month high of 61.0 in June. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Yahoo
04-06-2025
- Business
- Yahoo
Pink flags seen as services slips into contraction for first time since mid-2024
-- The Services PMI report, released on Wednesday, showed some early signs of stress for the most significant part of the U.S. economy, as tariff uncertainty weighs. However, the data was likely not weak enough to move the needle on the Fed cutting interest rates. In May, the service sector contracted for the first time since June 2024. The Services PMI showed a slight contraction at 49.9 percent, below the 50-percent breakeven point for only the fourth time in 60 months since the COVID recovery started in June 2020, data showed. This was below April's reading of 51.6 percent and below the consensus of 52. The report showed business activity in the U.S. services sector stalled in May, with the Institute for Supply Management's Business Activity Index holding at 50 percent. This marks the first time the index has exited expansion territory since May 2020, falling from 53.7 percent in April. New orders declined sharply, with the New Orders Index slipping to 46.4 percent from 52.3 percent, signaling contraction. Meanwhile, employment showed modest improvement, rising to 50.7 percent after two months of contraction. Supplier deliveries slowed slightly, as the index increased to 52.5 percent, the sixth consecutive month of expansion. The Prices Index rose to 68.7 percent, the highest level since November 2022, reflecting continued cost pressures. Inventories contracted, falling to 49.7 percent, while inventory sentiment rose to 62.9 percent, the strongest reading since July 2024. Backlogs continued to shrink, with the index dropping to 43.4 percent, its lowest level since August 2023. Ten industries reported growth in May, one fewer than in April. The Services PMI slipped to 49.9 percent, below the 12-month average of 52.3 percent and marking the fourth contraction in the past five years. Businesses across key service industries are reporting growing uncertainty and operational strain due to tariff variability, according to comments in the latest ISM survey. In construction, unpredictable tariffs have disrupted supply chains, particularly for materials sourced from Southeast Asia. Rising costs in refrigerants and steel are prompting HVAC manufacturers to raise prices, complicating long-term project planning. Finance and insurance firms report steady conditions with some growth, while healthcare providers cite federal budget cuts as a constraint on purchasing decisions. In the information sector, unclear tariff duties are prompting firms to delay procurement where possible. Mining companies are seeing moderate price increases on international raw materials, with some suppliers withholding inventory due to uncertainty. While new well production has slowed, activity has shifted toward restimulation projects. Professional services, especially in life sciences, continue progressing on clinical trials and product launches. Though tariffs are being monitored, they have yet to alter strategic direction. Public administration officials noted a slow return of project issuance, tempered by market instability. Retailers report strong demand, possibly driven by consumer concerns over future price hikes. Transportation and warehousing operators are facing higher operating costs tied to tariffs. While firms have attempted to budget for the increases, volatility remains a challenge. Business activity appears to be leveling off, though the duration of this trend is unclear. Utilities firms report growing demand tied to data centers and commercial infrastructure, while residential activity remains subdued. Across sectors, the unifying theme is that tariff-related unpredictability continues to complicate investment and supply decisions. Commenting on the report, Wells Fargo senior economist, Tim Quinlan, said the report paints a weak picture for the services sector, with falling demand likely driven by pre-tariff stockpiling, though it remains unclear if cost pressures will persist or impact hiring. 'The overall report was a bleak read on service-sector activity, but the details mostly reflect the dynamics of a pull-forward in demand ahead of tariffs,' Quinlan said. 'The plunge in demand does not bode well for coming activity, but it's too soon to know if cost pressure will be sustained and its influence on hiring.' He added that May the report doesn't necessarily force the Fed's hand clearly toward either side of its mandate. ING Chief International Economist James Knightley said the disappointment was with new orders. Further, he notes that when you look at the relationship between today's services report and the ISM manufacturing report. '[b]oth are now reporting a clear softening that points to the risk of much cooler GDP growth in the second half of 2025. Related articles Pink flags seen as services slips into contraction for first time since mid-2024 Bond yields fall as rate cut bets rise Fed's hand may be forced as disinflation builds, Macquarie says 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
Reuters
04-06-2025
- Business
- Reuters
Canada's services PMI rises to 3-month high in May as confidence improves
TORONTO, June 4 (Reuters) - The downturn in Canada's services economy eased somewhat in May as firms grew more hopeful that trade and political uncertainty would become less of a drag on activity over the coming 12 months, S&P Global's Canada services PMI data showed on Wednesday. The headline Business Activity Index was at 45.6 last month, its highest level since February and up from 41.5 in April. Still, it remained well below the 50.0 no-change mark that separates growth from contraction. 'Canada's service sector continued to struggle in the face of ongoing tariff and residual political uncertainty during May, with activity and new business volumes again declining markedly," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. 'That said, there are some hopes of greater stability in the year ahead, with confidence improving since April and helping to support some marginal employment growth as firms look ahead to higher workloads in the months ahead." The measure of employment rose to 50.3 from 47.9 in April, showing job increases for the first time since December, while the Future Activity Index was at 58.9, up from 56.4. Canadian Prime Minister Mark Carney's Liberal Party retained power in April's parliamentary elections, promising sweeping changes to Canada's economy. The nation sends about 75% of its exports to the United States, including autos, steel and aluminum which have been hit with hefty U.S. duties. On Friday, U.S. President Donald Trump said he plans to increase steel and aluminum tariffs to 50% from 25%. Tariffs were reported to have raised the price of some products, contributing to cost pressures that firms attempted to pass on to clients, S&P Global said. The prices charged measure rose to its highest level in one year at 54.6, up from 48.0 in April. The S&P Global Canada Composite PMI Output Index was at 45.5 last month, recovering some ground after it hit 41.7 in April, its lowest level since June 2020. Data on Monday showed a slower pace of decline for manufacturing activity in May. The S&P Global Canada Manufacturing PMI edged up to 46.1 from 45.3 in April.
