Latest news with #ServicesPurchasingManagers'Index
Economic Times
6 days ago
- Business
- Economic Times
ADB trims FY26 growth forecast to 6.5% on baseline US duty impact
The Asian Development Bank (ADB) has slightly lowered India's growth forecast for FY26 to 6.5%, citing US tariffs and policy uncertainty. Despite this, India remains a fast-growing major economy, supported by strong consumption and a revival in rural demand. The RBI also projects 6.5% GDP growth for FY26, while ADB anticipates improvement to 6.7% in FY27 with rising investments. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: The Asian Development Bank (ADB) on Wednesday lowered India's growth forecast for FY26 to 6.5% from 6.7% citing the impact of baseline tariffs imposed by the United States and impact of policy uncertainty on the downgrade, India continues to be one of the fastest growing major economies globally. The Reserve Bank of India (RBI) also projected India's gross domestic product (GDP) growth at 6.5% for FY26 from 6.7% earlier. The Indian economy grew by 6.5% in to the July Asian Development Outlook 2025, domestic economic activity remains resilient, supported by strong consumption, particularly from a revival in rural demand. "Services and agriculture sectors are expected to be key drivers of growth, the latter supported by a forecast of above-normal monsoon rains," it Manufacturing and Services Purchasing Managers' Index (PMI) indicates stronger performance in India in the first quarter of this fiscal year, compared to other economies in the Asia Pacific also noted that India's fiscal position remains healthy, aided by higher-than-expected dividends from the RBI. The central government is on track to meet its fiscal deficit reduction comparison, growth projections for China, the largest economy in the region, are unchanged at 4.7% in 2025 and 4.3% in 2026. "Policy stimulus for consumption and industrial activity is expected to offset continuing property market weakness and softening exports," the ADB South Asia, ADB revised the 2025 growth forecast down to 5.9% from 6% estimated in the April outlook."Asia and the Pacific has weathered an increasingly challenging external environment this year. But the economic outlook has weakened amid intensifying risks and global uncertainty," said Albert Park, ADB chief economist. "Economies in the region should continue strengthening their fundamentals and promoting open trade and regional integration to support investment, employment, and growth," he ahead, India's GDP growth is expected to improve to 6.7% in FY27 driven by rising investments, under the assumption of improved policy clarity and favourable financial conditions, following recent monetary easing. "The baseline expectations of lower crude oil prices will also support economic activity in FY2025 and FY2026," said the June, the RBI's monetary policy committee (MPC) cut the repo rate by 50 basis points to 5.5% and reduced cash reserve ratio by 100 bps to 3%, adding ₹2.5 lakh crore in liquidity into the banking next MPC meeting is scheduled for the first week of also revised its inflation forecast for India to 3.8% in FY26 from 4.3% estimated earlier, "reflecting faster-than-expected decline in food prices due to better agricultural production."India Ratings and Research (Ind-Ra) Wednesday revised India's growth forecast for FY26 to 6.3% from the previous estimate of 6.6%, due to tariff hikes by the US and a weaker investment climate. The Indian economy is facing both headwinds and tailwinds."Major headwinds are uncertain global scenario from the unilateral tariff hikes by the US for all countries and weaker-than-expected investment climate," said DK Pant, chief economist and head public finance at Ind-Ra."The major tailwinds are monetary easing, faster-than-expected inflation decline, and likely above-normal rainfall in 2025," he added.
Time of India
6 days ago
- Business
- Time of India
ADB trims FY26 growth forecast to 6.5% on baseline US duty impact
New Delhi: The Asian Development Bank (ADB) on Wednesday lowered India's growth forecast for FY26 to 6.5% from 6.7% citing the impact of baseline tariffs imposed by the United States and impact of policy uncertainty on investment. Despite the downgrade, India continues to be one of the fastest growing major economies globally. The Reserve Bank of India (RBI) also projected India's gross domestic product (GDP) growth at 6.5% for FY26 from 6.7% earlier. The Indian economy grew by 6.5% in FY25. Explore courses from Top Institutes in Please select course: Select a Course Category Finance Public Policy Data Science Artificial Intelligence Data Science Others MCA Digital Marketing Healthcare PGDM Technology Design Thinking Data Analytics healthcare Leadership MBA Operations Management CXO Product Management Cybersecurity Degree Management others Project Management Skills you'll gain: Duration: 9 Months IIM Calcutta SEPO - IIMC CFO India Starts on undefined Get Details Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Fintech & Blockchain India Starts on undefined Get Details According to the July Asian Development Outlook 2025, domestic economic activity remains resilient, supported by strong consumption, particularly from a revival in rural demand. "Services and agriculture sectors are expected to be key drivers of growth, the latter supported by a forecast of above-normal monsoon rains," it said. The Manufacturing and Services Purchasing Managers' Index (PMI) indicates stronger performance in India in the first quarter of this fiscal year, compared to other economies in the Asia Pacific region. ADB also noted that India's fiscal position remains healthy, aided by higher-than-expected dividends from the RBI. The central government is on track to meet its fiscal deficit reduction target. Live Events In comparison, growth projections for China, the largest economy in the region, are unchanged at 4.7% in 2025 and 4.3% in 2026. "Policy stimulus for consumption and industrial activity is expected to offset continuing property market weakness and softening exports," the ADB said. For South Asia, ADB revised the 2025 growth forecast down to 5.9% from 6% estimated in the April outlook. "Asia and the Pacific has weathered an increasingly challenging external environment this year. But the economic outlook has weakened amid intensifying risks and global uncertainty," said Albert Park, ADB chief economist. "Economies in the region should continue strengthening their fundamentals and promoting open trade and regional integration to support investment, employment, and growth," he added. Looking ahead, India's GDP growth is expected to improve to 6.7% in FY27 driven by rising investments, under the assumption of improved policy clarity and favourable financial conditions, following recent monetary easing. "The baseline expectations of lower crude oil prices will also support economic activity in FY2025 and FY2026," said the ADB. In June, the RBI's monetary policy committee (MPC) cut the repo rate by 50 basis points to 5.5% and reduced cash reserve ratio by 100 bps to 3%, adding ₹2.5 lakh crore in liquidity into the banking next MPC meeting is scheduled for the first week of August. ADB also revised its inflation forecast for India to 3.8% in FY26 from 4.3% estimated earlier, "reflecting faster-than-expected decline in food prices due to better agricultural production." Ind-Ra cuts FY26 forecast to 6.3% India Ratings and Research (Ind-Ra) Wednesday revised India's growth forecast for FY26 to 6.3% from the previous estimate of 6.6%, due to tariff hikes by the US and a weaker investment climate. The Indian economy is facing both headwinds and tailwinds. "Major headwinds are uncertain global scenario from the unilateral tariff hikes by the US for all countries and weaker-than-expected investment climate," said DK Pant, chief economist and head public finance at Ind-Ra. "The major tailwinds are monetary easing, faster-than-expected inflation decline, and likely above-normal rainfall in 2025," he added.
Irish Examiner
03-07-2025
- Business
- Irish Examiner
Services sector sees 'significant loss of momentum' in June
The services sector in Ireland saw a 'significant loss of momentum' during June as a result of softer output, new business and hiring activity, the latest AIB Ireland Services Purchasing Managers' Index (PMI) shows. The PMI reading for the sector in June stood at 51.5, down from 54.7 in May, which marks the slowest pace of growth since January 2024. The PMI reading is calculated from a survey of firms on the volume of business activity compared with one month previously. The index therefore varies between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. AIB chief economist David McNamara said new business expanded at a 'modest pace in June', dampened by an 'outright decline in export orders'. The PMI found international demand also contracted for the first time since October 2023. 'Some firms linked lower export activity to weaker US and European markets, and the impact of global trade tensions,' Mr McNamara said. The PMI also showed expectations 'remained close to the post-pandemic low'. Only two services sub-sectors registered growth during the month — the technology, media, and telecoms sector, and the business services sector. Transport, tourism, and leisure saw a decline for the fourth month in a row, while financial services contracted for the first time since January 2021. Firms found cost pressures eased during June to a nine-month low, while service providers raised their charges at the slowest rate in more than four years.
Korea Herald
05-06-2025
- Business
- Korea Herald
Seoul shares open higher on chip, heavy machinery gains
South Korean stocks opened higher Thursday, boosted by gains in semiconductors, heavy industry, and blue-chip shares. This upbeat start came despite a mixed finish on Wall Street overnight. The benchmark Korea Composite Stock Price Index (KOSPI) rose 23.05 points, or 0.83 percent, to 2,793.89 in early trading. The market built on Wednesday's 2.66 percent surge, which followed the inauguration of President Lee Jae-myung. Lee's election came after the ousting of former conservative President Yoon Suk Yeol, who was removed in December following a failed attempt to declare martial law. Investor sentiment in Seoul was more positive than in the US, where markets responded cautiously to economic data. The Institute for Supply Management reported its Services Purchasing Managers' Index fell to 49.9 in May, slipping below the 50-point mark for the first time since June 2023, suggesting a contraction. The Dow Jones Industrial Average fell 0.22 percent. The S&P 500 rose 0.32 percent, and the Nasdaq edged up 0.01 percent. Leading South Korean stocks advanced. Samsung Electronics gained 0.61 percent, and chip rival SK hynix jumped 3.56 percent. Hanwha Aerospace rose 3.67 percent, HD Hyundai Heavy Industries added 1.4 percent, and POSCO Holdings climbed 3.26 percent. In contrast, bio and battery stocks declined. Samsung Biologics dipped 0.19 percent, and LG Energy Solution slipped 0.17 percent. The Korean won strengthened against the US dollar, trading at 1,360.90 won as of 9:15 a.m., up 8.6 won from the previous close. (Yonhap)
The Star
04-06-2025
- Business
- The Star
U.S. stocks close mixed on weak hiring data in private sector
NEW YORK, June 4 (Xinhua) -- U.S. stocks closed mixed on Wednesday as investors digested weaker-than-expected private-sector hiring data and remained cautious amid fresh U.S.-China trade tensions, following the implementation of a steep steel and aluminum tariff hike. The Dow Jones Industrial Average dropped 91.90 points, or 0.22 percent, ending the session at 42,427.74, while the S&P 500 inched up 0.44 points, or 0.01 percent, to 5,970.81. The Nasdaq Composite gained 61.53 points, or 0.32 percent, to close at 19,460.49. Sector performance was split, with six of the S&P 500's 11 major groups finishing higher. Communication services and materials led the way, rising 1.36 percent and 0.35 percent, respectively. On the downside, energy and utilities were the weakest performers, falling 1.89 percent and 1.70 percent. Investor sentiment was dampened by the ADP National Employment Report, which showed private-sector hiring slowed significantly in May. Only 37,000 jobs were added, the weakest figure in over two years and far short of analyst expectation of 110,000 ones. Further economic data reflected softening conditions. The Institute for Supply Management's Services Purchasing Managers' Index (PMI) fell to 49.9 in May, slipping into contraction territory for just the fourth time in five years. The reading came in below April's 51.6 and missed economist forecasts for an increase to 52, suggesting service sector growth is losing steam. Jefferies economist Tom Simons wrote in a note to clients that the data likely reflect "more signs of a pause in activity rather than a steep contraction." "A broad pause is not a good thing, and the uncertainty that precipitated this pause has not shown any signs of lifting," he said. Meanwhile, U.S. President Donald Trump lashed out at Fed Chair Jerome Powell on social media again, calling for immediate rate cuts. Adding to market jitters, Trump's order to double tariffs on steel and aluminum imports to 50 percent took effect Wednesday, with only the United Kingdom exempted. The deadline also arrived for U.S. trading partners to submit "best offers" to avoid a broader wave of retaliatory tariffs slated for July. Barclays' Head of U.S. Equity Strategy Venu Krishna said that recent market movement reflects a "broad realization" that the extreme tariff rhetoric may not fully materialize, though it continues to create uncertainty for investors. "The bottom line is that while uncertainty remains high around the eventual tariff outcome, the rate of change on policy headwinds has become much less onerous." Wilson said. "This has reduced recession risk and is giving corporates and consumers more confidence in the forward looking outlook." The S&P 500 index will peak in the second quarter and then correct to the range of 5,250 points to 5,500 points in the second half of 2025, according to a presentation by Stifel on Tuesday. Major technology companies showed mixed performance on Wednesday. Meta Platforms advanced 3.16 percent, while chipmaker Broadcom, set to release earnings on Thursday, gained 1.65 percent. Nvidia, Microsoft, Amazon, and Alphabet posted modest increases. In contrast, electric vehicle manufacturer Tesla dropped 3.55 percent, and Apple edged down slightly.
