Latest news with #S&P Global Market Intelligence
The Guardian
3 days ago
- Business
- The Guardian
UK's services sector has biggest fall in orders for nearly three years
The UK's dominant service sector has reported its biggest drop in new orders in almost three years in July, adding to pressure on the Bank of England to cut interest rates on Thursday. Sounding the alarm over a loss of momentum amid a worsening global economic backdrop, the data provider S&P Global Market Intelligence said total new work in the sector, which accounts for about 80% of the economy, eased to the slowest pace since November 2022. The survey of 650 companies in the sector, which includes finance, IT, communications and property but excludes retail, is closely watched by the Bank and the government for early warning signs from the economy. Threadneedle Street is widely expected to cut borrowing costs at its next policy meeting on Thursday from the current level of 4.25% amid growing concerns about the strength of the economy. Financial markets put the odds of a quarter-point reduction at 95%, amid rising unemployment and the hit to global trade from Donald Trump's fresh round of import tariffs unleashed last week. Tim Moore, economics director at S&P Global Market Intelligence, said: 'Risk aversion and low confidence among clients were the main reasons provided for sluggish sales pipelines, alongside an unfavourable global economic backdrop.' The survey showed that subdued sales pipelines and concerns about the rising cost of doing business led to an accelerated pace of job shedding, continuing a downward trend in employers' hiring intentions. The headline purchasing managers' index for the services sector dropped to 51.8 in July, from 52.8 in June. A reading of 50.0 separates growth in output from a fall in activity. Highlighting weakness in the UK jobs market, the employment index fell to 45.6 from 47.0, the lowest reading since February. Moore said: 'Hiring trends were especially subdued, with total workforce numbers decreasing to the greatest extent since February. Worries about rising payroll costs were cited as the main factor holding back recruitment.' Business leaders have issuing warnings that measures in Rachel Reeves's first autumn budget, including a £25bn rise in employer national insurance contributions (NICs) and 6.7% increase in the minimum wage, would hit jobs and growth. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Official figures show that unemployment rose to a four-year high of 4.7% in the three months to May, while the economy shrank in both April and May. Matt Swannell, chief economic adviser to the EY Item Club, said it was 'almost certain' that the Bank's monetary policy committee would cut interest rates on Thursday. 'With the MPC balancing signs of fragility in the labour market against evidence of lingering inflationary pressure, the committee will likely signal that further gradual interest rate cuts remain appropriate.'
Zawya
4 days ago
- Business
- Zawya
UAE's PMI slips to lowest level in four years over geopolitical tensions
Geopolitical headwinds continued to weigh on non-oil activity in the UAE, with July's Purchasing Managers' Index (PMI) slipping to its lowest level in four years. The seasonally adjusted S&P Global UAE dropped more than a point to 52.9 in July, down from the previous month's 53.5, implying the rate of growth was softer than the survey's long-run trend. The survey signalled the weakest growth in non-oil business conditions since June 2021, as regional tensions continued to weigh on sales. A further slowdown in new business growth made some clients hesitant to commit to new spending, the report said. Hiring and purchasing growth also suffered, while output expanded sharply as firms sought to prevent further increases in backlogs of work. Additionally, a quicker rate of cost inflation led to a fresh rise in average prices charged. Despite higher orders compared to June, survey panellists were weighed down by weaker tourism activity and global trade disruptions. 'New order volumes helped firms to expand, but this trend is declining, with the latest data indicating the softest rise in incoming new work in almost four years,' David Owen, Senior Economist at S&P Global Market Intelligence, said. 'While survey members partly link this slowdown to tensions between Iran and Israel, which has made some clients hesitant to spend, there were also many suggesting that markets are becoming more crowded, making it increasingly difficult to secure new orders,' he added. The PMI for July indicated overall increase in output remained strong, with some firms reporting output increased in response to new sales opportunities, rising client incomes, and the clearance of pending work. Employment rose slightly, but marked the weakest uplift in four months, coinciding with a steeper rise in outstanding business. Stocks of inputs fell for the third time in five months, which was partly linked to backlog clearance efforts and some delays in the receipt of supplied items. Higher costs for shipping, raw materials, wages and capital, also weighed on firms, with the overall rise in input prices being the fastest since April. Projections for future activity remained optimistic in July, driven by hopes of strengthening demand levels. However, the degree of confidence eased slightly, as some companies highlighted risks stemming from global economic uncertainty and heightened competition. 'Should regional tensions ease, we may see a recovery in sales growth in the coming months… Nevertheless, the ongoing trends of rising competition, limited inventory, constrained hiring growth and relatively low confidence among surveyed firms suggest that downside risks remain elevated,' Owen added. Dubai PMI The Dubai non-oil private sector rose in July, rising to 53.5 from a 45-month low of 51.8 in June, amid a recovery in demand growth. The survey attributed new orders to the recovery, which indicated a sharper improvement in sales volumes compared to June. Survey participants reported better business conditions and an increase in new client enquiries. As a result, Dubai non-oil firms expanded output at the sharpest rate in five months while continuing efforts to increase employment and inventories. The survey indicated that although input costs rose at the fastest pace since April, overall inflationary pressures remained relatively modest. Consequently, non-oil firms raised their selling prices at the slowest rate in eight months. (Writing by Bindu Rai, editing by Brinda Darasha)
Zawya
4 days ago
- Business
- Zawya
Egypt's non-oil sector shows signs of stability as PMI nears growth threshold
Egypt's non-oil private sector showed signs of stabilisation in July, with employment rising for the first time in nine months and a softer decline in output and new orders, according to the latest S&P Global Egypt PMI report. The headline PMI rose to 49.5 in July from 48.8 in June, remaining below the 50.0 threshold that separates growth from contraction. However, the index reached its joint-highest level in five months, suggesting only a marginal decline in business conditions. "Businesses ... had the confidence to hire new staff, leading to an increase in employment for the first time in nine months, if only a fractional one," said David Owen, Senior Economist at S&P Global Market Intelligence. Employment rose as firms responded to signs of stabilising demand and rising backlogs of work. Output and new orders continued to fall, albeit at a softer rate than in June, with some firms noting increased activity amid tentative signs of recovering sales. The wholesale and retail sector remained the largest drag on demand and activity. Input prices rose at a quicker pace, driven by higher costs for items such as cement and fuel, yet remained below the long-run trend. Selling charges increased for the third consecutive month, although the rate of inflation was modest. Despite ongoing challenges, optimism about future activity improved slightly from June's record low, with firms expressing hopes for slower inflation and reduced regional conflict. However, overall confidence remained historically subdued. (Reporting by Reuters)
Reuters
4 days ago
- Business
- Reuters
Egypt's non-oil sector shows signs of stability as PMI nears growth threshold
Aug 5 (Reuters) - Egypt's non-oil private sector showed signs of stabilisation in July, with employment rising for the first time in nine months and a softer decline in output and new orders, according to the latest S&P Global Egypt PMI report. The headline PMI rose to 49.5 in July from 48.8 in June, remaining below the 50.0 threshold that separates growth from contraction. However, the index reached its joint-highest level in five months, suggesting only a marginal decline in business conditions. "Businesses ... had the confidence to hire new staff, leading to an increase in employment for the first time in nine months, if only a fractional one," said David Owen, Senior Economist at S&P Global Market Intelligence. Employment rose as firms responded to signs of stabilising demand and rising backlogs of work. Output and new orders continued to fall, albeit at a softer rate than in June, with some firms noting increased activity amid tentative signs of recovering sales. The wholesale and retail sector remained the largest drag on demand and activity. Input prices rose at a quicker pace, driven by higher costs for items such as cement and fuel, yet remained below the long-run trend. Selling charges increased for the third consecutive month, although the rate of inflation was modest. Despite ongoing challenges, optimism about future activity improved slightly from June's record low, with firms expressing hopes for slower inflation and reduced regional conflict. However, overall confidence remained historically subdued.
Yahoo
6 days ago
- Business
- Yahoo
Why ChargePoint Stock Slumped This Week
Key Points It pulled the lever on a quite unpopular piece of financial engineering. At least the move will keep it in compliance with listing requirements. 10 stocks we like better than ChargePoint › It's safe to say that almost no investor likes it when one of their investments pulls off a reverse stock split. For very good reasons, this is generally seen as a desperate attempt to remain in compliance with the minimum share price listing requirements imposed by U.S. exchanges. So, it wasn't shocking at all that ChargePoint Holdings (NYSE: CHPT) took a real hit to its stock price largely because of the move -- which actually obscured more than one positive news item about the company. According to data compiled by S&P Global Market Intelligence, ChargePoint's share price fell by more than 22% over the course of the trading week. Reversal of fortune ChargePoint ripped the bandage off on Wednesday, formally splitting its stock at a ratio of 1-for-20. It's important to note here that no stock split, reverse or otherwise, changes the underlying value of a company. In this case, the drastically reduced number of shares is offset by a higher per-share price. As is typical in these situations, ChargePoint made the split to regain compliance with its market's minimum price requirement. Specifically, the New York Stock Exchange stipulates an average of at least $1 per share across a 30-day trading period. The skinny share price is, in many ways, the least of ChargePoint's roadblocks. The company has struggled with declining revenue growth and continuing bottom-line losses. Meanwhile, electric vehicle (EV) sales growth isn't as robust as it was in previous years. Bullish developments Not all the news for ChargePoint was discouraging during the week. It launched its Safeguard Care program, which it describes as a service that "provides end-to-end reliability monitoring of ChargePoint charging stations." This should be reassuring to clients and give the company something of an edge over rivals. Should you buy stock in ChargePoint right now? Before you buy stock in ChargePoint, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ChargePoint wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why ChargePoint Stock Slumped This Week was originally published by The Motley Fool 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
