Latest news with #Fiddes
Business Recorder
5 days ago
- Business
- Business Recorder
Japan's service sector growth slows in May, PMI shows
TOKYO: Growth in Japan's service-sector activity slowed in May on weaker demand, offering little to mitigate falling factory activity and resulting in a near-zero growth for business overall, a private sector survey showed on Wednesday. The final au Jibun Bank Japan Services purchasing managers' index (PMI) fell to 51.0 in May from 52.4 in April, although it was higher than flash 50.8. An index reading above the 50.0 threshold indicates growth and a reading below indicates contraction. New business growth in the service sector eased to its slowest pace since November, while employment growth in services was the weakest rate since December 2023, the survey showed. Service-sector managers' confidence in their future outlook improved to a three-month high in May from April's four-year low, but the overall level stayed weaker than the post-pandemic average, according to the survey. 'Concerns over the outlook often stemmed from uncertainty over future global demand, as well as labour shortages and rising costs,' said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. 'The latter was highlighted by a further steep increase in input prices, to suggest that official inflation data will remain strong.' Japan's service activity expands on solid demand, PMI shows Input price inflation eased from April's 26-month high but remained elevated, with managers citing higher costs for energy, labour and transport, prompting service providers to continue raising their output charges roughly in line with April's pace. The slowdown in services, combined with a continued decrease in manufacturing, left overall private sector activity stagnant with the composite PMI dropping to 50.2 in May from 51.2 in April. 'The weaker demand picture suggests that the private sector may struggle to bounce back in the near-term, and could translate into more cautious staff hiring in the months ahead,' Fiddes said.
New Straits Times
5 days ago
- Business
- New Straits Times
Japan's service sector growth slows in May, PMI shows
TOKYO: Growth in Japan's service-sector activity slowed in May on weaker demand, offering little to mitigate falling factory activity and resulting in a near-zero growth for business overall, a private sector survey showed on Wednesday. The final au Jibun Bank Japan Services purchasing managers' index (PMI) fell to 51.0 in May from 52.4 in April, although it was higher than flash 50.8. An index reading above the 50.0 threshold indicates growth and a reading below indicates contraction. New business growth in the service sector eased to its slowest pace since November, while employment growth in services was the weakest rate since December 2023, the survey showed. Service-sector managers' confidence in their future outlook improved to a three-month high in May from April's four-year low, but the overall level stayed weaker than the post-pandemic average, according to the survey. "Concerns over the outlook often stemmed from uncertainty over future global demand, as well as labour shortages and rising costs," said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. "The latter was highlighted by a further steep increase in input prices, to suggest that official inflation data will remain strong." Input price inflation eased from April's 26-month high but remained elevated, with managers citing higher costs for energy, labour and transport, prompting service providers to continue raising their output charges roughly in line with April's pace. The slowdown in services, combined with a continued decrease in manufacturing, left overall private sector activity stagnant with the composite PMI dropping to 50.2 in May from 51.2 in April. "The weaker demand picture suggests that the private sector may struggle to bounce back in the near-term, and could translate into more cautious staff hiring in the months ahead," Fiddes said.
Reuters
03-04-2025
- Business
- Reuters
Japan services sector loses steam in March as confidence eases, PMI shows
TOKYO, April 3 (Reuters) - Japan's service industry stagnated in March while broader private sector activity contracted at the fastest pace in more than two years, a business survey showed on Wednesday. The service sector's slowdown is of particular concern to the world's fourth-largest economy, which counts on it to anchor growth and offset some of the drag from struggling manufacturing. here. The au Jibun Bank Japan Services Business Activity Index fell to the neutral level of 50.0 in March from a joint-six month high of 53.7 in February, better than a flash reading of 49.5, according to index publisher S&P Global Intelligence. The 50.0 threshold separates expansion from contraction. "After a solid performance in the opening two months of the year, business activity across Japan's service sector stagnated in March as firms commented that market conditions had softened," said Annabel Fiddes, economics associate director at S&P Global Market Intelligence. New order growth slowed for the second straight month to its weakest since last November, according to the survey. New export business continued expanding thanks to solid demand from mainland China and Taiwan, even though the pace eased from last month. Business expectations for the year ahead were solid, but optimism softened to the lowest since January 2021, weighed by concerns about labour shortages, an aging population and global trade uncertainties, Fiddes said. Japanese companies are worried President Donald Trump's blitz of tariffs against trading partners would trigger a broader global downturn. Meanwhile, input price inflation climbed at the fastest pace in 19 months with respondents citing higher labour, raw material and fuel costs as well as exchange rates, the survey showed. Output prices eased to a five-month low. The composite PMI, which combines manufacturing and service activity, fell to 48.9 in March from 52.0 in February, the first contraction since October.
Yahoo
01-04-2025
- Business
- Yahoo
Japan's factory activity declines pick up, PMI shows
TOKYO (Reuters) - Japan's factory activity declines accelerated in March as demand weakened and the escalating U.S. trade war clouded the manufacturing outlook, a private-sector survey showed on Tuesday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) fell to 48.4 in March from 49.0 in February, hitting the lowest in 12 months. Although the final reading was slightly higher than the flash figure of 48.3, it also marked the ninth straight month below the 50.0 threshold that separates growth from contraction. "Indices for output and new orders fell further into contraction territory, as companies noted weaker demand from both domestic and international clients," said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. Output declined for the seventh straight month and at the quickest pace in a year, while new orders contracted for a 22nd consecutive month. New export business also fell slightly, with manufacturers citing muted demand from key markets such as China and the United States, according to the survey. Companies' outlook for future demand improved from February, when it hit the lowest since 2020, but the recovery was slow, due in part to "greater uncertainty over the global economic outlook and trade environment," Fiddes said. U.S. President Donald Trump last week unveiled a 25% tariff on imported cars to take effect on April 3, in what could be a major blow to Japan's manufacturing sector and the broader economy. Meanwhile, employment emerged as a bright spot, with firms adding workers at the fastest pace in three months. Some companies said that they added to payrolls to fill in vacancies or in anticipation for greater demand ahead, according to the survey. Cost pressures remained high, with companies reporting sharp increases in expenses for labour, materials, energy and transport, exacerbated by an unfavourable exchange rate. "The latest survey showed historically strong increases in both input costs and selling prices in March, to suggest inflationary pressure across the sector remains acute," Fiddes added. Sign in to access your portfolio
Reuters
01-04-2025
- Business
- Reuters
Japan's factory activity declines pick up, PMI shows
TOKYO, April 1 (Reuters) - Japan's factory activity declines accelerated in March as demand weakened and the escalating U.S. trade war clouded the manufacturing outlook, a private-sector survey showed on Tuesday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) fell to 48.4 in March from 49.0 in February, hitting the lowest in 12 months. Although the final reading was slightly higher than the flash figure of 48.3, it also marked the ninth straight month below the 50.0 threshold that separates growth from contraction. "Indices for output and new orders fell further into contraction territory, as companies noted weaker demand from both domestic and international clients," said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. Output declined for the seventh straight month and at the quickest pace in a year, while new orders contracted for a 22nd consecutive month. New export business also fell slightly, with manufacturers citing muted demand from key markets such as China and the United States, according to the survey. Companies' outlook for future demand improved from February, when it hit the lowest since 2020, but the recovery was slow, due in part to "greater uncertainty over the global economic outlook and trade environment," Fiddes said. U.S. President Donald Trump last week unveiled a 25% tariff on imported cars to take effect on April 3, in what could be a major blow to Japan's manufacturing sector and the broader economy. Meanwhile, employment emerged as a bright spot, with firms adding workers at the fastest pace in three months. Some companies said that they added to payrolls to fill in vacancies or in anticipation for greater demand ahead, according to the survey. Cost pressures remained high, with companies reporting sharp increases in expenses for labour, materials, energy and transport, exacerbated by an unfavourable exchange rate. "The latest survey showed historically strong increases in both input costs and selling prices in March, to suggest inflationary pressure across the sector remains acute," Fiddes added.
