Latest news with #GlobalPurchasingManagers'Index
Arabian Post
2 days ago
- Business
- Arabian Post
UAE Non-Oil Sector Growth Slows Amid Tariff Pressures
The UAE's non-oil private sector experienced its slowest growth in nearly four years in May, with the S&P Global Purchasing Managers' Index dropping to 53.3 from April's 54.0, marking its lowest reading since September 2021. Despite this deceleration, the index remained above the 50.0 threshold, indicating continued expansion. The output sub-index fell to 57.3, the weakest since September 2021, while new order growth slowed to 56.2, a seven-month low. These figures suggest that while demand remains strong, growth momentum is easing. David Owen, senior economist at S&P Global Market Intelligence, noted that 'the survey signals that the UAE economy is performing well, but the softer increases in output and new orders hint at momentum easing.' He attributed the slowdown to competitive pressures and weaker trade resulting from U.S. tariffs. ADVERTISEMENT Inventory levels saw a record decline as firms adjusted to slower growth, and backlogs of work rose at their slowest rate in 16 months. Business optimism for future output diminished to its lowest since January. Despite these challenges, Dubai's non-oil sector maintained steady growth with a PMI of 52.9 in May, matching April's figure. The emirate demonstrated improved demand momentum, marked by a four-month high in new order growth. Employment levels increased at the fastest pace in a year, as businesses expanded their workforce to meet rising workloads. This hiring activity was supported by a continued increase in new orders, although firms appeared to be balancing expansion with caution amid moderating economic conditions. The broader economic context includes global uncertainties from trade tensions and declining oil prices. The International Monetary Fund has reduced its 2025 economic growth forecast for the Middle East and North Africa region to 2.6%, down from 4% projected in October 2024. This downward revision reflects rising global uncertainties from a trade war, declining oil prices, and ongoing regional geopolitical tensions. The UAE's non-oil sector has been a key focus of the country's economic diversification efforts. Despite the current slowdown, the sector's resilience is evident in continued expansion and employment growth. However, the impact of external factors such as tariffs and global economic conditions underscores the challenges ahead.
Yahoo
3 days ago
- Business
- Yahoo
Russian services sector sees fastest growth since January in May, PMI shows
(Reuters) - Russia's services sector expanded in May at the quickest pace since January, driven by stronger demand and new orders, even as firms reduced their workforce numbers, a business survey showed on Wednesday. The S&P Global Purchasing Managers' Index (PMI) for Russia's services sector rose to 52.2 last month from 50.1 in April, moving further above the 50 mark denoting growth. New business at service providers increased at the fastest rate in four months, the survey showed. New export business, which had contracted for a year after Moscow invaded Ukraine in February 2022, expanded for the seventh successive month in May, the survey showed. "The sustained rise in new business from abroad reportedly stemmed from an uptick in customer demand in existing markets," S&P Global said. However, the outlook for future output dimmed, with confidence dropping to its lowest level since July 2023. "Firms hope that client demand will improve further and drive new sales, with others also mentioning that output growth could be supported by investment in new products," S&P Global said. Employment in the services sector saw a renewed decline, with firms cutting headcount at the fastest rate since January 2023. A sister survey published on Monday showed Russia's manufacturing sector returned to growth in May, supported by a fresh upturn in new orders, even as output contracted for the third month running amid reports of supply shortages. 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
Egypt Today
4 days ago
- Business
- Egypt Today
Signs of Stabilization Emerge in Egypt's Non-Oil Private Sector
Egypt's non-oil private sector edged closer to stability in May, as the pace of contraction in business activity and new orders eased, according to the latest S&P Global Purchasing Managers' Index (PMI) report released on Tuesday. The seasonally adjusted PMI rose to 49.5 in May, up from 48.5 in April, signaling a softer economic downturn. Although the index remains just below the critical 50-point threshold that separates expansion from contraction, the upward movement indicates a deceleration in the sector's decline. Both output and new business remained in contraction, but the drops were less severe than in the previous month. A smaller number of companies reported weakened customer demand, hinting at a potential turning point in consumer sentiment. Despite these improvements, firms cut back on purchasing activity at the fastest rate in seven months and continued to reduce staffing levels for the fourth month in a row, highlighting lingering caution in operations and hiring. The output index climbed to 49.5 from 47.4 in April, while the new orders index rose to 49.1, also up from 47.4. These gains suggest a gradually improving business environment, even if growth has yet to fully materialize. Cost pressures, however, remained a challenge. Input prices continued to climb, driven largely by rising supplier costs and ongoing currency fluctuations. In turn, many businesses raised their selling prices to protect profit margins. David Owen, economist at S&P Global Market Intelligence, commented that although May's data still points to contraction, the slowdown in the rate of decline is encouraging, with the figures presenting a gentler drop than both April's results and the long-term average.
Yahoo
06-05-2025
- Business
- Yahoo
Eurozone recovery stalls as services lose momentum despite manufacturing uptick
Business activity in the eurozone eked out minimal growth in April, as a faltering services sector offset a surprise manufacturing rebound, while easing inflation strengthened expectations of a European Central Bank rate cut at its next June meeting. The S&P Global Purchasing Managers' Index (PMI) for the eurozone rose slightly to 50.1 in April, a level that technically signals growth, but only just. The reading, revised up from an initial 49.7, revealed an economy struggling to build on momentum from the first quarter of the year. At the heart of this sluggish expansion is a divergence between sectors. Manufacturing output rose at its fastest pace in over two years, buoyed by improving supply chains and a rebound in industrial activity. In contrast, the services sector—the bloc's economic workhorse—barely expanded, with the Services PMI falling to 50.1 from March's 51.0. It marked the weakest reading since late 2024 and suggests that demand across tourism, hospitality and business services is running out of steam. Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said the broader picture remains subdued: 'The services sector, which is a major player, practically stagnated in April. Even though manufacturing output saw a surprising uptick, it wasn't enough to prevent the overall slowdown in growth.' Demand drags, sentiment dims Behind the headline figures, the underlying data paints a sobering picture. New business orders fell for an eleventh consecutive month, and at a marginally faster rate than in March. Both goods producers and service providers noted weaker sales, continuing a trend of soft demand that has restrained growth since mid-2023. France stood out again for the wrong reasons, with its composite PMI signalling contraction for the eighth month in a row. The eurozone's second-largest economy remains mired in political uncertainty and stagnation, contrasting with comparatively better performances in Spain, Italy and Germany. 'Spain is leading the pack in terms of growth, followed by Italy, then Germany with marginal growth, and France trailing behind,' said de la Rubia. 'We expect Germany to soon outpace Italy thanks to a generous fiscal package, while France is likely to remain at the bottom for now.' Employment across the bloc ticked up for a second straight month, as rising headcounts in services offset ongoing declines in manufacturing. However, businesses appear hesitant to expand their workforce, reflecting deeper caution amid persistent economic uncertainty. Confidence about the future has also taken a hit. Business expectations for the year ahead declined to their lowest level in almost two and a half years. It marks the fourth consecutive monthly dip, underlining how soft demand and geopolitical uncertainty are weighing on sentiment.
Euronews
06-05-2025
- Business
- Euronews
Eurozone recovery stalls as services lose momentum despite manufacturing uptick
ADVERTISEMENT Business activity in the eurozone eked out minimal growth in April, as a faltering services sector offset a surprise manufacturing rebound, while easing inflation strengthened expectations of a European Central Bank rate cut at its next June meeting. The S&P Global Purchasing Managers' Index (PMI) for the eurozone rose slightly to 50.1 in April, a level that technically signals growth, but only just. The reading, revised up from an initial 49.7, revealed an economy struggling to build on momentum from the first quarter of the year. At the heart of this sluggish expansion is a divergence between sectors. Manufacturing output rose at its fastest pace in over two years, buoyed by improving supply chains and a rebound in industrial activity. In contrast, the services sector—the bloc's economic workhorse—barely expanded, with the Services PMI falling to 50.1 from March's 51.0. It marked the weakest reading since late 2024 and suggests that demand across tourism, hospitality and business services is running out of steam. Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said the broader picture remains subdued: 'The services sector, which is a major player, practically stagnated in April. Even though manufacturing output saw a surprising uptick, it wasn't enough to prevent the overall slowdown in growth.' Demand drags, sentiment dims Behind the headline figures, the underlying data paints a sobering picture. New business orders fell for an eleventh consecutive month, and at a marginally faster rate than in March. Both goods producers and service providers noted weaker sales, continuing a trend of soft demand that has restrained growth since mid-2023. France stood out again for the wrong reasons, with its composite PMI signalling contraction for the eighth month in a row. The eurozone's second-largest economy remains mired in political uncertainty and stagnation, contrasting with comparatively better performances in Spain, Italy and Germany. 'Spain is leading the pack in terms of growth, followed by Italy, then Germany with marginal growth, and France trailing behind,' said de la Rubia. 'We expect Germany to soon outpace Italy thanks to a generous fiscal package, while France is likely to remain at the bottom for now.' Employment across the bloc ticked up for a second straight month, as rising headcounts in services offset ongoing declines in manufacturing. However, businesses appear hesitant to expand their workforce, reflecting deeper caution amid persistent economic uncertainty. Confidence about the future has also taken a hit. Business expectations for the year ahead declined to their lowest level in almost two and a half years. It marks the fourth consecutive monthly dip, underlining how soft demand and geopolitical uncertainty are weighing on sentiment. ECB gets breathing space on inflation There is a silver lining for policymakers. Price pressures continued to moderate in April, with input cost inflation at a five-month low and output charges rising at their slowest pace in 2025 so far. This could bolster the European Central Bank's case for a rate cut in June, a move several Governing Council members have already signalled. 'In the services sector, cost pressures are still relatively high, though they have eased a bit over the past couple of months,' said de la Rubia. 'Inflation is down for sales prices and continued to trend lower… These latest figures seem to support the ECB's stance.' With inflation moderating and growth still tepid, markets are increasingly pricing in a rate cut at the ECB's next meeting. Markets lose steam after April rally In equity markets, eurozone stocks gave up some ground on Tuesday following a strong run in recent weeks. The Euro STOXX 50 index slipped 1%, with Germany's DAX down 0.7% and France's CAC 40 lower by 0.5%. Industrial giants were among the laggards. Airbus, Siemens and BASF each dropped around 2%, while Carrefour and UniCredit outperformed, both rising 0.8%. ADVERTISEMENT Earnings news added volatility. Continental shares rose nearly 2% after reporting their strongest sales in four years. The company affirmed that it is well positioned amid ongoing tariff uncertainty. Danish wind turbine maker Vestas surged 4% after returning to profit in the first quarter. Hugo Boss rose nearly 6% on a revenue beat, while Philips fell 1% after cutting its full-year margin outlook. Ferrari is expected to report later on Tuesday.
