Latest news with #CompositePMI
Euronews
22-05-2025
- Business
- Euronews
EasyJet loss widens but UK budget airline confirms its 2025 targets
Private sector activity in the eurozone unexpectedly contracted in May for the first time this year, with weakening demand and renewed pessimism weighing on the services sector and dragging overall momentum to a six-month low. According to preliminary data compiled by S&P Global, the eurozone's Composite Purchasing Managers' Index (PMI) fell to 49.5 in May from 50.4 in April, below the 50.7 expected by economists and marking the lowest reading since November 2024. A figure below 50.0 signals contraction. The drop reflects a significant loss of momentum in services, where business activity declined for the first time in six months and at the sharpest pace since January 2024. The services PMI dropped to 48.9, from 50.1 in April, missing expectations of 50.3. Meanwhile, manufacturing remained weak, with a PMI reading of 48.4—up slightly from April's 48.0 but still firmly below the growth threshold. Business sentiment also deteriorated. Confidence in the euro area edged lower for a second consecutive month, reaching its weakest level since October 2023. The decline was again particularly pronounced in services, where optimism fell to levels not seen since September 2022. Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said the figures show an economy struggling to gain traction. 'Since January, the overall PMI has shown only the slightest hint of growth and in May, the private sector actually slipped into contraction,' he said. 'Do not blame US tariffs for this one. In fact, efforts to get ahead of those tariffs might partly explain why manufacturing has held up a bit better lately.' De la Rubia noted that eurozone manufacturers have now increased production for a third consecutive month, with new orders no longer declining—something not seen since April 2022 Yet, the services sector—typically more shielded from external shocks—appears increasingly vulnerable. 'Foreign demand for services is softening, but it's the sluggish domestic demand that seems to be dragging the sector down,' de la Rubia said. The result, he suggested, is a subdued outlook that aligns with cautious company sentiment and a hesitant recovery path. According to the expert, the latest PMI data offer a mixed picture for the European Central Bank (ECB). While service-sector sales price inflation ticked down slightly from an already low level, input costs are still rising and may even be accelerating. He attributed this mainly to higher wages, as energy prices continue to fall. Despite the continued cost pressures in services, de la Rubia said the ECB is likely to proceed with cautious interest rate cuts, especially as manufacturing purchase prices are now declining. In Germany, the eurozone's largest economy, business activity contracted further in May. The Composite PMI fell to 48.6 from 50.1 in April. While the manufacturing PMI ticked up to 48.8, services dragged the economy lower, with their index falling sharply to 47.2 from 49.0. 'Manufacturing is doing better, as output has been climbing for three months in a row, and new orders are following suit,' said de la Rubia. 'In the service sector, by contrast, activity has taken a sharper tumble, and that drop has pulled overall activity into contraction.' Still, hopes for fiscal stimulus—particularly in infrastructure and defence—could offer support in the months ahead. 'Falling input costs, especially cheaper energy, should offer manufacturers some breathing room,' de la Rubia added. In a separate release on Thursday, Germany's business morale, measured by the Ifo Institute, rose to 87.5 in May from 86.9, its highest level since June 2024. It marked a fifth consecutive monthly increase, diverging from S&P Global's weaker survey data. In France, the picture remained subdued but showed signs of stabilisation. The Composite PMI edged up slightly to 48.0 in May, from 47.8 in April, as the manufacturing PMI rose to 49.5—its highest since February 2023—while services remained soft at 47.4. 'France's private sector remained subdued in May,' said Jonas Feldhusen, junior economist at Hamburg Commercial Bank. 'The Flash Composite PMI continues to signal contraction, reflecting the economic challenges France is facing amid domestic political instability and a fragile macroeconomic environment.' Feldhusen noted a divergence between sectors: 'The manufacturing sector showed signs of recovery, supported by increased factory output. In contrast, the services sector deteriorated further, with weak new business and a decline in the employment outlook.' He flagged price dynamics as a growing concern. 'While output prices slipped into deflationary territory in May, input cost inflation accelerated, signalling a squeeze on profit margins, particularly in the services sector,' he said. Despite weaker-than-expected PMI data, the euro held firm on Thursday, supported by renewed investor scepticism toward the US dollar amid growing concerns over Washington's fiscal outlook. By 10:20 a.m. Central European Time, the euro was trading around $1.1330, broadly unchanged from Wednesday's levels. German bond markets also showed limited movement: 10-year Bund yields held steady at 2.65%, while two-year yields slipped by 3 basis points to 1.83%, reflecting expectations that the European Central Bank will continue its rate-cutting cycle. Eurozone equities followed Wall Street's Wednesday downturn. The Euro STOXX 50 index fell 1.4%, with losses recorded in 43 of its components. National indices posted more moderate declines. Germany's DAX and France's CAC 40 each dropped 0.7%, Italy's FTSE MIB fell 0.9%, and Spain's IBEX 35 lost 0.7%. Low-cost UK airline EasyJet saw its shares plunge on Thursday morning after the company reported widening losses but confirmed its targets for the financial year. The airline's headline loss before tax was £394 million (€467.3m) for the six months ending 31 March 2025, the first half of the company's financial year ending in September 2025. This compares to £350m (€415.1m) for the previous year. EasyJet also reported an 8% rise in its group revenue, to £3.53 billion (€4.2bn) from £3.27bn (€3.9bn) for the same period. Seat capacity increased by 6%, and the number of passengers rose by 8%. Strong winter bookings helped boost the results, but the timing of Easter made a negative impact of £50m (€59.3m). The income was also dragged down by increased investment and higher fuel costs. The company's share price plunged in the morning trade in London by 6%, it made up some losses by 10 a.m. when the shares traded more than 3% cheaper than the previous day's close. EasyJet holidays, the company's tour operator branch, delivered a £44m (€52.2m) profit, £13m (€15.4m) more compared to the same period in the previous year. The travel operator branch Easyjet holiday, which accounts for more than one-tenth of the group's revenue, has just teamed up with Tesco Clubcard, potentially reaching 23 million households. It is also expected to deliver a passenger growth of around 25% until the end of September 2025. Concerning the group's overall performance, 'We saw a strong financial performance in April reflecting the shift in Easter this year,' the report said, underpinning the company's expectations to be able to deliver its financial targets. The airline aims to generate more than £1bn (€1.2bn) in annual profit in the medium term. This is supported by increased bookings for the summer, with the third and fourth quarters already being 80% and 42% sold, respectively. 'We remain focused on delivering another record summer this year, expecting to drive strong earnings growth as we continue to progress towards our target of sustainably generating over £1 billion of annual profit before tax,' Kenton Jarvis, CEO of easyJet, said. The company is adopting new planes that are more fuel efficient, lowering costs, while adding new destinations. Richard Hunter, head of markets at Interactive Investor, said, 'Despite having posted its usual and expected winter loss, easyJet has on closer inspection made the sort of progress which should ensure another year of growing profitability.' As for the plunging share price, 'the price has risen by 21% over the last year, as compared to a gain of 4.5% for the wider FTSE100,' Hunter said, adding that good numbers for April are supporting hopes for the group. 'The market consensus of the shares as a buy [is] unlikely to waver despite any early turbulence in the share price reaction.' Bitcoin surged to a fresh record high on Thursday, fuelled by optimism that the US Congress will soon pass a bill ill for stablecoin- the GENIUS Act, which is set to be the first regulatory framework under the Trump Administration. During Thursday's Asian session, the world's largest cryptocurrency soared past $111,000 (€98,000) at 5:23 am CEST, surpassing its previous all-time high of over $109,000 (€96,000) set during President Trump's inauguration on 20 January. The rally was supported not only by legislative developments but also by increasing institutional interest. Crípto guru Michael Saylor's firm, Strategy, disclosed a further aggressive Bitcoin purchase worth $765 million (€675 million) on Monday, bringing its total holdings to over $63 billion (€56 billion). Major financial institutions, including JPMorgan Chase, Morgan Stanley and BlackRock, have also expanded crypto offerings to clients. 'Perhaps the most crucial shift is who's buying. This is the first real bull market where institutional participation is front and centre,' said Josh Gilbert, market analyst at eToro Australia. Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to reference assets such as the US dollar, the euro or commodities like gold. On Monday, a group of Senate Democrats dropped their opposition to the legislation, allowing it to clear a key procedural vote and raising hopes that the Senate will pass it as early as this week. The bill is expected to include provisions aimed at protecting stablecoin holders and regulating potential abuse for criminal or terrorist financing. Previously, the bill had stalled over concerns about potential conflicts of interest, stemming from President Trump's and his family's involvement in the cryptocurrency. Trump launched his own meme coin in January, while the Trump family business supported the launch of a new stablecoin, USD1, in March. USD1 is pegged to US dollar deposits and backed by short-term US Treasuries. David Sacks, the White House's crypto tsar and a senior AI adviser to Trump, said in an interview with CNBC that the bill's passage would boost demand for US government debt. 'If we provide the legal clarity and legal framework for this, I think we could create trillions of dollars of demand for our Treasuries practically overnight,' he said. Bitcoin has emerged as one of the top-performing risk assets this year, having risen nearly 20% year-to-date. In contrast, the S&P 500 has slipped 0.48%, while the Nasdaq has gained 2.7%. Meanwhile, gold, a traditional safe-haven asset, has climbed about 21% over the same period. Wednesday's US 20-year US government bond auction revealed tepid demand, pushing Treasury yields sharply higher. Bond yields move inversely to prices. The auction result underscored mounting investor concerns about Washington's ballooning debt burden, amid upcoming Trump's proposed tax bill. The market reaction also followed Moody's decision to downgrade the US credit outlook last Friday. Surging bond yields triggered renewed selling pressure across US assets, with stocks, the dollar and Treasuries all falling on Wednesday. Despite its impressive rally, Bitcoin remains a highly volatile financial asset with limited fundamental support, unlike stocks which are underpinned by corporate earnings.
Economic Times
22-05-2025
- Business
- Economic Times
Private sector activity in May at 13-month high
India's private sector activity soared to a 13-month high in May, reaching 61.2, fueled by a rapid expansion in the services sector. The Composite PMI reflects strong economic performance, driven by buoyant demand and investment. Despite some firms citing price pressures and geopolitical tensions, new orders and exports experienced robust growth. Tired of too many ads? Remove Ads India's private sector activity surged to a 13-month high of 61.2 in May from 59.7 in April, driven by an acceleration in services, according to a private survey released on HSBC Flash India Composite Output Index was 60.5 in May 2024. The Composite Purchasing Managers Index (PMI) is a weighted average of comparable manufacturing and services indices. "India's flash PMI indicates another month of strong economic performance," said Pranjul Bhandari, chief India economist at increase in service sector output was the fastest in 14 months, while the manufacturing sector recorded the slowest increase in three months. Survey respondents attributed growth at the composite level to buoyant demand, investment in technology and expanded capacities. However, some firms noted that price pressures, competition and the India-Pakistan conflict negatively impacted April 2, the US announced reciprocal tariffs on various countries, imposing a 26% tariff on Indian imports. While US announced a 90-day pause until July 9, a baseline tariff of 10% remains in manufacturing sector was negatively hit across Asia due to trade uncertainties, domestic-oriented economies like India were outliers. New orders also picked up, with support from international demand. The private sector recorded the fastest increase in exports in a year, said the survey."Growth in production and new orders among manufacturing firms remains robust, despite a marginal cooling from the rates of increase observed in April," said Bhandari.
Yahoo
22-05-2025
- Business
- Yahoo
Eurozone private sector slips into contraction as services falter in May
Private sector activity in the eurozone unexpectedly contracted in May for the first time this year, with weakening demand and renewed pessimism weighing on the services sector and dragging overall momentum to a six-month low. According to preliminary data compiled by S&P Global, the eurozone's Composite Purchasing Managers' Index (PMI) fell to 49.5 in May from 50.4 in April, below the 50.7 expected by economists and marking the lowest reading since November 2024. A figure below 50.0 signals contraction. The drop reflects a significant loss of momentum in services, where business activity declined for the first time in six months and at the sharpest pace since January 2024. The services PMI dropped to 48.9, from 50.1 in April, missing expectations of 50.3. Meanwhile, manufacturing remained weak, with a PMI reading of 48.4—up slightly from April's 48.0 but still firmly below the growth threshold. Business sentiment also deteriorated. Confidence in the euro area edged lower for a second consecutive month, reaching its weakest level since October 2023. The decline was again particularly pronounced in services, where optimism fell to levels not seen since September 2022. Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said the figures show an economy struggling to gain traction. 'Since January, the overall PMI has shown only the slightest hint of growth and in May, the private sector actually slipped into contraction,' he said. 'Do not blame US tariffs for this one. In fact, efforts to get ahead of those tariffs might partly explain why manufacturing has held up a bit better lately.' De la Rubia noted that eurozone manufacturers have now increased production for a third consecutive month, with new orders no longer declining—something not seen since April 2022 Yet, the services sector—typically more shielded from external shocks—appears increasingly vulnerable. 'Foreign demand for services is softening, but it's the sluggish domestic demand that seems to be dragging the sector down,' de la Rubia said. The result, he suggested, is a subdued outlook that aligns with cautious company sentiment and a hesitant recovery path. According to the expert, the latest PMI data offer a mixed picture for the European Central Bank (ECB). While service-sector sales price inflation ticked down slightly from an already low level, input costs are still rising and may even be accelerating. He attributed this mainly to higher wages, as energy prices continue to fall. Despite the continued cost pressures in services, de la Rubia said the ECB is likely to proceed with cautious interest rate cuts, especially as manufacturing purchase prices are now declining. In Germany, the eurozone's largest economy, business activity contracted further in May. The Composite PMI fell to 48.6 from 50.1 in April. While the manufacturing PMI ticked up to 48.8, services dragged the economy lower, with their index falling sharply to 47.2 from 49.0. 'Manufacturing is doing better, as output has been climbing for three months in a row, and new orders are following suit,' said de la Rubia. 'In the service sector, by contrast, activity has taken a sharper tumble, and that drop has pulled overall activity into contraction.' Still, hopes for fiscal stimulus—particularly in infrastructure and defence—could offer support in the months ahead. 'Falling input costs, especially cheaper energy, should offer manufacturers some breathing room,' de la Rubia added. In a separate release on Thursday, Germany's business morale, measured by the Ifo Institute, rose to 87.5 in May from 86.9, its highest level since June 2024. It marked a fifth consecutive monthly increase, diverging from S&P Global's weaker survey data. In France, the picture remained subdued but showed signs of stabilisation. The Composite PMI edged up slightly to 48.0 in May, from 47.8 in April, as the manufacturing PMI rose to 49.5—its highest since February 2023—while services remained soft at 47.4. 'France's private sector remained subdued in May,' said Jonas Feldhusen, junior economist at Hamburg Commercial Bank. 'The Flash Composite PMI continues to signal contraction, reflecting the economic challenges France is facing amid domestic political instability and a fragile macroeconomic environment.' Feldhusen noted a divergence between sectors: 'The manufacturing sector showed signs of recovery, supported by increased factory output. In contrast, the services sector deteriorated further, with weak new business and a decline in the employment outlook.' He flagged price dynamics as a growing concern. 'While output prices slipped into deflationary territory in May, input cost inflation accelerated, signalling a squeeze on profit margins, particularly in the services sector,' he said. Despite weaker-than-expected PMI data, the euro held firm on Thursday, supported by renewed investor scepticism toward the US dollar amid growing concerns over Washington's fiscal outlook. By 10:20 a.m. Central European Time, the euro was trading around $1.1330, broadly unchanged from Wednesday's levels. German bond markets also showed limited movement: 10-year Bund yields held steady at 2.65%, while two-year yields slipped by 3 basis points to 1.83%, reflecting expectations that the European Central Bank will continue its rate-cutting cycle. Eurozone equities followed Wall Street's Wednesday downturn. The Euro STOXX 50 index fell 1.4%, with losses recorded in 43 of its components. National indices posted more moderate declines. Germany's DAX and France's CAC 40 each dropped 0.7%, Italy's FTSE MIB fell 0.9%, and Spain's IBEX 35 lost 0.7%.
&w=3840&q=100)
Business Standard
06-05-2025
- Business
- Business Standard
India's services PMI hits 58.7 in April, export orders drive modest growth
India April 2025 Services PMI: Composite PMI, which combines manufacturing and services PMI, improves to 59.7, up from 59.5 in March New Delhi India's Services Purchasing Managers' Index (PMI) for April 2025, compiled by S&P Global, rose to 58.7, signalling a slight growth in the country's services sector compared to 58.5 recorded in March. The India Composite Purchasing Managers' Index (PMI) rose to 59.7, up from 59.5 in March. A PMI reading above 50 signals sector expansion, while a reading below 50 indicates contraction, and 50 reflects no change. The overall growth in output was driven by a substantial rise in new business intakes, matching an eight-month high, with numerous companies reporting favourable market conditions and effective marketing campaigns. Some businesses noted that efficiency improvements allowed them to take on more work. Consistent with patterns observed in the previous survey period, the finance and insurance sub-sector showed the strongest growth rates for both output and new orders. "India's services activity rose at a faster pace than last month. New export orders gained momentum after taking a breather in March, accelerating at its fastest pace since July 2024. Margins improved as cost pressures eased and prices charged rose at a faster pace. Though firms remained optimistic about future growth, their confidence waned slightly," Pranjul Bhandari, chief India economist at HSBC, said. Export orders sees fastest growth in 9 months Indian service providers continued to experience benefits from strengthened international demand, with particular growth noted from Asia, Europe, West Asia, and the US markets. The expansion of new export orders reached its fastest pace since July 2024. What is services PMI and why it matters? The Services PMI (Purchasing Managers' Index) is an indicator that provides insight into the performance and economic health of the services sector. The index keeps track of key variables in the services industry including sales, employment levels, inventory management, and prices. The index helps investors, economists, and policymakers understand current business conditions. Composite PMI Output Index for April India's composite PMI, which combines the data from both the Manufacturing PMI and the Services PMI, also improved to 59.7, up from 59.5 in March. The latest data showed a sharp rate of expansion that was the strongest since August 2024. New business volumes across the private sector grew at the quickest pace in eight months, supported by a pick-up in growth in the service economy. Both manufacturing and service sectors recorded faster increases in new export orders. At the composite level, the growth rate reached a nine-month high. Manufacturing PMI hits 10-month high of 58.2 in April The manufacturing sector had registered a 10-month high in April 2025, despite the HSBC India Manufacturing PMI only rising slightly to 58.2 from 58.1 in March. This followed a 14-month low of 56.3 in February, when output, new orders, and input purchasing had lagged. The improvement in April was marked by a growth in production, employment and stocks of purchases. IIP growth rises to 3% in March In March, the Index of Industrial Production (IIP) growth recovered slightly to 3 per cent from a six-month low of 2.72 per cent in February, while overall industrial output growth for 2024-25 (FY25) stood at a four-year low of 4 per cent. The Reserve Bank of India's Monetary Policy Committee (MPC) slashed the repo rate by 25 basis points to 6 per cent, bringing it down to 6 per cent in April. The MPC changed its policy stance from "neutral" to "accommodative," suggesting more rate cuts may follow. This marked the second rate reduction in 2025 after the policy rate was cut from 6.5 per cent to 6.25 per cent in February.
Yahoo
06-05-2025
- Business
- Yahoo
India's April services growth edges up; confidence falls to two-year low, PMI shows
BENGALURU (Reuters) - India's services sector growth picked up slightly in April after March's slowdown as demand expanded robustly, although optimism was its weakest in nearly two years, a survey showed on Tuesday. The HSBC India Services Purchasing Managers' Index (PMI), compiled by S&P Global, rose marginally to 58.7 in April from 58.5 in March, lower than a preliminary estimate of 59.1. PMI readings above 50.0 indicate growth in activity, while those below that level point to a contraction. New business volumes - a key gauge of demand - increased sharply in April, as it did in the previous two months. International demand strengthened considerably, with export orders expanding at the fastest rate since July 2024. Finance and insurance emerged as the strongest-performing sub-sector, recording the highest growth rates for both output and new orders. To meet rising client demand, service providers boosted their workforce numbers for a 35th straight month. The rate of job creation accelerated from March and exceeded the long-term average. "New export orders gained momentum after taking a breather in March, accelerating at its fastest pace since July 2024. Margins improved as cost pressures eased and prices charged rose at a faster pace," said Pranjul Bhandari, chief India economist at HSBC. On the price front, input cost inflation eased to its lowest in six months. Companies took advantage of strong demand conditions to pass on costs, raising their selling prices at a quicker pace than in March. Easing price pressures have given the Reserve Bank of India room to lower its key repo rate by 50 basis points this year with a few more cuts expected in the next few months. Still, business sentiment fell for a fifth consecutive month, and is now at its lowest level since mid-2023, with increasing competition dampening optimism. The HSBC India Composite PMI, which includes both manufacturing and services, rose to 59.7 in April from 59.5 in March, marking the strongest expansion in private sector activity since August.
