Latest news with #businessGrowth
Irish Times
5 hours ago
- Business
- Irish Times
Growth in Irish services sector rebounds slightly against euro zone decline
The rate of growth in Ireland's services sector has rebounded slightly from April's lows but remains below the long-term average, the latest AIB purchasing managers index (PMI) has revealed. Optimism levels in the sector barely recovered from last month's post-pandemic low, with firms pointing to ongoing economic uncertainty caused by trade war fears. The seasonally adjusted AIB Ireland services business activity index rose to 54.7 from 52.8 in April. 'The uptick was driven by stronger new business growth and a recovery in output expectations, albeit outstanding business and employment growth both eased,' AIB chief economist David McNamara said. READ MORE This rate of growth is well ahead of the euro zone, which at 48.9 experienced a slight decline in business activity, as well as the UK and US, which both saw mild growth in the sector at 50.2 and 52.3 respectively. The index ranges from 0 to 100, with a figure above 50 showing growth. The transport, tourism and leisure industry was a drag on the overall sectoral index, registered a third successive monthly decline in activity at 47.0, the fastest rate of decline since October 2023. However, growth in the remaining subsectors outweighed that decline. The technology, media and telecoms sector recorded the fastest expansion of business activity in May at 59.1, followed by business services (56.0) and financial services (54.2). This trend was largely matched in the employment indicators, the transport, tourism and leisure sector posted a decline in staffing for the first time in 2025, while the financial services area reported mild growth. 'On the inflation front, input cost pressures eased further to the slowest rate since last September,' AIB's chief economist noted, 'but prices charged picked up and remain well above the long-term average'. Companies reported labour costs as the primary inflationary pressure, alongside insurance and fuel costs. While companies reported a higher level of input price inflation, the prices charged to customers saw a lesser rate. Despite this, the sector has seen consecutive price increases every month since March 2021. The rate of new business growth improved in May, following a drop in April, but the new business index remains below its long-run average. Contributing to that regrowth was new work from international clients which rose slightly in the month. Optimism levels in the sector recovered minimally after a stark decrease in April. While firms highlighted trade disruptions as cause for concern, the 12-month outlook was kept positive overall by confidence from investment, new services, AI innovation, larger sales teams and tourism. This sense was strongest in the financial services subsector and weakest in business services
The National
14 hours ago
- Business
- The National
Nearly half of UAE entrepreneurs lack succession plans to secure family businesses, HSBC says
Nearly half of the UAE's entrepreneurs do not have succession plans in place to pass their businesses on to the next generation, according to HSBC. Forty-eight per cent of businesspeople in the Emirates have no such plans, only five per cent lower than the global average, Britain's biggest bank said on Wednesday in a spin-off study of its latest Global Entrepreneurial Wealth Report. Around 39 per cent of the Emirates' entrepreneurs will pass their businesses to the next generation, while 10 per cent are selling them off, the study found. This compares to global averages of 34 per cent and 10 per cent, respectively. Those who were able to take over family businesses say they felt trusted by the previous generation, the report found. 'Being prepared for business succession and clearly communicating with family will be key to long-term survival,' Gemma Wild, head of global collaboration for the Middle East and North Africa at HSBC Global Private Banking, said in the report. 'Opportunities are abundant, but only those who are prepared will succeed.' The UAE has rapidly become a hub for entrepreneurs and the wealthy thanks to its strong economic growth and policy reforms it has rolled out to attract investors. Dubai and Abu Dhabi lead the top five preferred global locations for high-net-worth people looking to relocate, driven by personal tax incentives and a good quality of life, global property consultancy Savills said in an April report. The UAE capital also ranked among the top five places for corporate relocations based on corporate tax and business environments, volumes of foreign direct investment, and economies and knowledge bases, the consultancy said. The number of millionaires living in Dubai has doubled in the past decade, making it one of the world's fastest-growing wealth hubs, according to World's Wealthiest Cities Report 2025 by New World Wealth for Henley & Partners, released in April. In 2024, Dubai had an estimated 81,200 millionaires, 237 centimillionaires, whose wealth is in the hundreds of millions, and 20 billionaires, according to the report. That compares to 72,500 millionaires, 212 centimillionaires and 15 billionaires in 2023. 'Entrepreneurs, by their very nature, are optimistic and recognise opportunities even within the most constrained circumstances,' HSBC said. 'Those in the UAE are no exception: they possess high levels of optimism around their personal wealth growing in the near future.' UAE entrepreneurs feel more valued UAE entrepreneurs felt more valued by society compared to their international peers, as they prioritise ethics over pursuing profits, the HSBC study found. Around 86 per cent of businesspeople in the Emirates claim they feel more valued by the broader community, compared to the worldwide average of 79 per cent, it said. Business decisions taken by UAE entrepreneurs are driven by purpose, with about 81 per cent saying they align their practices with personal values over profit, the report found. Additionally, 88 per cent of them act to make an impact on society – and this figure is even higher, at 91 per cent, for ultra-high-net-worth people, or those who have a fortune of at least $30 million, HSBC said. 'This could be the reason for their success: with a deep-seated purpose that drives them to succeed beyond mere financial gain,' the bank said.
The National
21 hours ago
- Business
- The National
UAE non-oil business activity down in May amid tariff pressures
Business activity in the UAE's non-oil private sector slowed in May amid uncertainty stemming from the global tariff situation, although economic fundamentals remain "solid", S&P Global Market Intelligence said. The S&P Global Purchasing Managers Index for the Emirates declined to 53.3 last month from 54 in April, the agency said on Wednesday. Although well above the neutral 50 mark that separates expansion from contraction, the index was at its lowest since September 2021. Despite the dip, improvement in the UAE's non-oil economy remains strong as demand conditions remained robust, resulting in a marked increase in output, the report said. "Although businesses continued to welcome strong demand from their clients, there were some reports that competitive pressures and weaker trade amid US tariffs had weighed on growth," said David Owen, a senior economist at S&P Global Market Intelligence. "From an overall perspective, the survey signals that the UAE economy is performing well, but the softer increases in output and new orders hint at momentum easing," he said. The report also highlighted a record decrease in input stocks, as companies looked streamline their operations. Businesses benefitted from a softer rise in input prices, as inflation decelerated to its lowest since December 2023. "The sharp cutback in stocks and the broadly subdued outlook for activity suggest that firms are gearing up for softer growth," Mr Owen added. The UAE has been focusing heavily on diversifying its economy from oil by developing sectors such as technology, manufacturing, tourism, trade and innovation. The UAE's economy grew by 3.9 per cent in 2024, the Central Bank reported in April, with the non-oil growth up 4.6 per cent. The banking regulator expects the country's GDP to expand at 4.7 per cent this year, with non-oil growth at 5.1 per cent. The economy is expected to grow by 5.7 per cent in 2026. Globally, the sweeping US tariffs continue to cast a cloud of uncertainty over trade and supply chains, especially with US President Donald Trump remaining unpredictable over his policies. A number of companies in the UAE have said these tariffs have either no or minimal impact on their businesses, as they benefit from established local supply chains, and they are monitoring the situation so they can adjust accordingly. "Higher sales often translated into greater activity, although some reported that global economic uncertainty linked to US tariffs had negatively affected output," analysts at S&P Global said in the report. Meanwhile, Dubai's PMI remained at 52.9 in May, its joint lowest since the beginning of 2022, but S&P highlighted a "solid expansion" in operating conditions across the non-oil private sector. Businesses continued to receive higher levels of new orders, with the rate of growth ticking up to a four-month high. Panellists linked the upturn to improved client confidence and positive effects from marketing strategies and competitive pricing, it added.
CNA
a day ago
- Business
- CNA
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.
Al Arabiya
2 days ago
- Business
- Al Arabiya
Saudi Arabia's non-oil private sector growth accelerates in May, PMI shows
The expansion in Saudi Arabia's non-oil private sector activity quickened in May, driven by accelerated growth in new orders, while business confidence also strengthened, a survey showed on Tuesday. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) rose to 55.8 in May from 55.6 in April, firmly in growth territory even though it remains below the peak of 60.5 seen at the beginning of the year. New order volumes rebounded strongly in May from an eight-month low in April, attributable to increased demand, strong sales performance, and new marketing initiatives. New export orders also grew, albeit at the slowest pace in seven months. The new order subindex jumped to 62.5 in May from April's 58.6 reading. But the pace of output growth eased to its softest since September 2024. The construction sector led the rise in both activity and new business, according to the survey. 'On the domestic front, firms increased hiring to match rising output needs, while purchasing activity saw its fastest growth since March 2024, supported by improved vendor delivery times and a more agile supply chain,' Naif Al-Ghaith, Riyad Bank's chief economist said. Input prices rose sharply, driven by increased supplier charges for raw materials. However, competitive pressures led firms to reduce selling prices, particularly in the services sector, despite higher costs. The degree of business optimism improved significantly, with confidence among respondents reaching an 18-month high, as companies cited expansion plans and improved demand conditions.
