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Mint
4 days ago
- Business
- Mint
US services sector misses expectations, tariff concerns hurt growth in July
The US services sector experienced a slowdown in July, with activity levels dipping below expectations, news agency AFP reported on Tuesday, citing data from the Institute for Supply Management (ISM). The report says that President Donald Trump's tariffs and global trade tensions are key factors that impacted the growth of global industries this year. The Institute for Supply Management (ISM) services index fell to 50.1 per cent in July, a slight decrease from 50.8 per cent in June. Although the figure remains above the 50 per cent mark, indicating growth, it missed the expected forecast of 51.5 per cent, the news report said. "The Employment Index's continued contraction and faster expansion of the Prices Index are worrisome developments," ISM survey chair Steve Miller told AFP. He further added that both the new exports and imports indexes moved from expansion to contraction territory, giving "signals that tariff tensions are impacting global trade". "The most common topic among survey panelists remained tariff-related impacts, with a noticeable increase in commodities listed as up in price," Miller said. The business activity index was in expansion but cooled from June's reading, so did the new orders index. However, the employment index remained in the contraction territory for the second straight month, the news agency reported. "Anticipation of the final tariff impacts is resulting in delayed planning for next fiscal year purchases," said a respondent in the accommodation and food services sector. Another respondent, in the agriculture industry, added that "higher tariffs are increasing the cost of imported feed ingredients and trace minerals for livestock and poultry feeds". Carl Weinberg, chief economist at High Frequency Economics, commented that "a slowing trend in service sector output is a cause for concern." Weinberg said the report supported the view of a gradually slowing economy, though he noted that it did not yet warrant monetary easing.
Time of India
4 days ago
- Business
- Time of India
US services activity misses expectations, reflecting slow growth
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel US services sector activity ticked down in July, survey data showed Tuesday, hovering at a level reflecting slow growth as President Donald Trump's tariffs this year impacted global Institute for Supply Management (ISM) services index edged down to 50.1 percent last month, from 50.8 percent in the figure remains above the 50 percent mark indicating growth, even as the latest number missed expectations of 51.5 percent according to a consensus forecast."The Employment Index's continued contraction and faster expansion of the Prices Index are worrisome developments," said ISM survey chair Steve Miller in a added that both the new exports and imports indexes moved from expansion to contraction territory, providing "signals that tariff tensions are impacting global trade .""The most common topic among survey panelists remained tariff-related impacts, with a noticeable increase in commodities listed as up in price," Miller business activity index remained in expansion but cooled from June's reading, as did the new orders index, the report employment index, however, was in contraction territory for the second straight month."Anticipation of the final tariff impacts is resulting in delayed planning for next fiscal year purchases," said a respondent in the accommodation and food services respondent, in the agriculture industry, added that "higher tariffs are increasing the cost of imported feed ingredients and trace minerals for livestock and poultry feeds."Carl Weinberg, chief economist at High Frequency Economics, said in a note: "A slowing trend in service sector output is a cause for concern.""This report supports the view that the economy is gradually slowing," he added, although noting it does not yet call for monetary easing.
Business Recorder
26-07-2025
- Business
- Business Recorder
Confidence among global accountants remains fragile despite Q2 rise: GECS
KARACHI: The ACCA and IMA Global Economic Conditions Survey (GECS) showed improving global confidence in Q2 2025, with the index reaching its highest since Q3 2024. That said, confidence among accountants is still at a low level by historical standards. The New Orders and Capital Expenditure indices both declined modestly, although the former is at its historical average and the latter not much below and both are at levels broadly similar to other readings since the aftermath of Russia's invasion of Ukraine. Meanwhile, the Employment Index improved and is not that far below its historical average. Of the major regions, confidence in North America rose in Q2, amid some improvement in sentiment among U.S.-based accountants, but it remains depressed by historical standards. Western Europe saw another moderate gain in confidence aided by a further improvement in the UK from its record low in Q4 2024. By contrast, confidence fell sharply in Asia Pacific, erasing the gains made in Q1 2025. The deterioration in the backdrop for global trade, amid major changes in U.S. trade policy, was likely the key factor weighing on sentiment. Jonathan Ashworth, Chief Economist, ACCA, said: 'Global growth has generally proved quite resilient in the first half of 2025, despite the large increases in U.S. tariffs and massive rise in uncertainty. While the key GECS indicators are certainly not pointing to a global economy in rude health, with confidence in particular remaining low, neither are they suggesting that a major downswing is imminent.' 'Nevertheless, with higher tariffs likely to push U.S. inflation higher over coming months, and as uncertainty and tariffs weigh on the U.S. and global economies, some slowing in global growth looks likely over the second half of 2025.' Alain Mulder, Senior Director, Europe Operations & Global Special Projects at IMA said: 'Global cost pressures eased according to accountants, although there are divergent regional pressures. The proportion of North American respondents reporting increased operating costs eased slightly, although it remains on the high side historically after the large increase in Q1, raising the risk that firms may attempt to raise prices over coming months.' Copyright Business Recorder, 2025
Fibre2Fashion
09-07-2025
- Business
- Fibre2Fashion
UK employment stalls despite early signs of economic recovery: BDO
The UK's employment outlook remains stagnant, with labour market stuck near its lowest level in over a decade, even as the broader economy shows early signs of a summer recovery, according to BDO. The Employment Index fell again in June to 94.22 from 94.32 the previous month, nearly at a 13-year low. Despite some positive output signals from the services sector, hiring remains subdued as businesses continue to grapple with cost pressures, BDO said in its latest Business Trends report. BDO's June 2025 Business Trends report showed that UK's employment outlook remains stagnant, with the Employment Index near a 13-year low at 94.22. Despite a modest rise in output, business confidence and hiring remain subdued due to rising costs and NICs. Inflation pressures are easing slightly, but optimism is predicted to stay below average through 2025, as firms adopt a cautious stance. The report stated that the demand for labour is adjusting in response, with many firms holding back on recruitment. This caution is reflected in payrolled employment figures, which fell by 109,000 in May—nearly twice the drop seen in April—pointing to a possible acceleration in job losses. Business confidence continues to remain underwhelming, with BDO's Optimism Index falling to 91.58 from 92.3 in the previous month. Core cost pressures, particularly around labour, continue to drag on margins, with the prospect of further tax rises in the Autumn adding further to a cautious sentiment. Greater certainty following recent trade agreements with the US, EU and India offered a small boost to manufacturing business sentiment, but the sector remains volatile with no clear easing of these headwinds in sight. The report predicted optimism will stay well below long-term averages through the second half of the year. 'There are some positive signals in the UK economy, with the BDO Output Index rising from 97.16 in May to 97.51 at the end of June, marking two months of consecutive increase,' said report. The BDO inflation index decreased to 99.1, down from 99.59 the previous month. Meanwhile, the BDO Employment Index registered at 94.22, marginally down from May's 94.32. 'We're seeing early signs of recovery in business output, largely down to the services sector who have buoyed the economy for a second month in a row,' said Scott Knight, head of growth at BDO. 'But, as we all know, we can't rely on good weather forever. Businesses are treading carefully in wait-and-see mode when they need to be bold in their recruitment and investment. Without lower labour costs, clear signalling from government and a stable policy environment, growth will remain subdued.' The report is based on data drawn from multiple surveys, collectively covering responses from over 4,000 businesses across the UK. Fibre2Fashion News Desk (SG)
Yahoo
20-06-2025
- Business
- Yahoo
Pre-Markets Climb on Rate Cut Visibility
Friday, June 20, 2025We finish off the trading week after a nice edge-of-summer break for Juneteenth yesterday. Pre-market indexes are climbing a quarter-point to a third of a point higher at this hour, with the small-cap Russell 2000 already up more than +1%. Only the Russell is up over the past five trading days, but the other indexes are Dow is up +114 points right now, with the S&P 500 +14. The Nasdaq is +62 points at this hour, with the Russell +25 points. Currently, only the S&P 500 and the Nasdaq are up (marginally) year to date. Bond yields are remaining in place, more or less: +4.44% on the 10-year, +3.95% on the 2-year and +4.94% on the 30-year. Headline Philly Fed manufacturing came in at -4.0 for June, equalling the prior month's level and notching the third-straight month lower. Business conditions, capital expenditures, new orders and prices paid were all lower last month. And the Employment Index sank lower than expected, to -9.8. This could be seen as a further indication of a softening labor market in the traders are not missing this opportunity: a sinking Employment Index, while a relatively minor part of the Philly Fed Index (which focuses on the region around Philadelphia and the goods-producing sector there), do point to an opening for the Fed to lower interest rates at some point in the future. But the Fed would have to see demonstrably worse employment numbers first. We will most certainly track this new infusion of positivity into the stock market; it may even bring us a positive trading week over all, depending on the size of gains. We also have to keep our eyes and ears open about potential trade deals ahead of the July 9th deadline, as well as any new developments in the Middle East, on which President Trump has cooled his rhetoric (with yet another self-imposed deadline of two weeks before making a decision on whether to make a move on Iran).After today's open, the latest U.S. Leading Economic Indicators (LEI) report will come out for the month of May. Expectations are for a headline to drift marginally negative: -0.1%, from a deeper -1.0% for April and -0.8% for March. We are now scraping 9-year lows on LEI — well off the late 2021/early 2022 April, all components were lower except Lending Credit and Manufacturing New Orders, both of which were up marginally. Meanwhile, the Coincident Economic Index (CEI) has fully recovered from Covid-era lows to keep its upward trajectory. While the LEI is a leading indicator for growth, the CEI reflects current economic conditions. It's a big data week starting on Monday. Various prints on the housing market, Services and Manufacturing PMI, Durable Goods, Jobless Claims and Personal Consumption Expenditures (PCE) — a week from today — will all be hitting the tape. PCE levels in particular are important, as they tend to have a pronounced effect on future Fed monetary policy or comments about this article and/or author? Click here>> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
