Latest news with #businessconfidence
Times of Oman
2 hours ago
- Business
- Times of Oman
India's manufacturing PMI hits 16-month high at 59.1 in July on strong demand, output
New Delhi: India's manufacturing activity gained further momentum in July, rising to a 16-month high of 59.1 from 58.4 in June, driven by stronger growth in new orders, output, and inventory buildup, according to the data of HSBC India Manufacturing Purchasing Managers' Index (PMI). The rating agency said that firms bought extra inputs to broadly the same extent as in June, however, whilst job creation receded to the weakest since November 2024. Meanwhile, business confidence retreated to its lowest level in three years. "Rising from 58.4 in June to 59.1 in July, the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI®) - a single-figure indicator of sector performance - signalled the strongest improvement in the health of the sector since March 2024," firm said. According to the HSBC PMI report, the growth in new orders was the sharpest in nearly five years, driven by robust domestic demand and successful marketing efforts. This surge in demand led to a 15-month high in production output, with intermediate goods producers seeing the strongest acceleration, even as other segments experienced slower growth. The report, however, highlighted that the cost pressures have intensified during the month, though they remained modest by historical standards. On the pricing front, the increase in selling prices was higher than the long-run average, indicating that firms passed on some of the input cost pressures to customers. While international demand also contributed to the overall increase in sales, export orders grew at a slower pace compared to June, though the growth remained one of the strongest in over 14 years. The report added that companies continued to hire extra staff at the start of the second fiscal quarter, but they did so to the least extent in eight months. Despite this strong performance, some concerns emerged. Job creation weakened, with July recording the slowest pace of employment growth since November 2024. "Among the main headwinds to growth, survey members listed competition and inflation concerns," the report added. On the purchasing side, the report added that the manufacturers increased input buying to rebuild inventories. Although the pace of buying was slightly slower than in June, it was still the second-fastest in the past 15 months. Improved supplier performance also helped boost stocks of purchases, which grew at their strongest rate in 15 months.
Yahoo
2 hours ago
- Business
- Yahoo
Business confidence worse than during Covid
Business confidence has plunged to an all-time low to surpass the pandemic and Liz Truss's mini-Budget after Rachel Reeves unleashed record taxes on employers. Bosses said they were 'frustrated' that the Chancellor had hit businesses with a barrage of cost increases while failing to improve the economic backdrop. The survey published by the Institute of Directors (IoD) showed the share of business leaders reporting they were pessimistic about the economic outlook exceeded those who were optimistic by 72pc. It means bosses are at their most pessimistic since the monthly survey started running in 2016, to outstrip the Covid lockdowns, fraught Brexit negotiations and the aftermath of Ms Truss's disastrous mini-Budget. Andrew Griffith, the shadow business secretary, accused the Government of 'attacking private enterprise with the zeal of a Left-wing student union'. He added: 'Instead of the cuts in spending which are urgently needed, this socialist Government hits businesses with higher taxes, raised energy costs and more trade-union inspired red tape. 'A year ago businesses faced a summer of uncertainty followed by massive tax hikes. Like a bad horror move franchise, the Chancellor seems determined to release a sequel.' Businesses are slashing investment plans and expect to cut back the number of staff they employ, amid falling revenues and soaring costs. Anna Leach, the IoD's chief economist, urged the Chancellor to 'urgently quash rumours of further tax rises for business this autumn, and accelerate planning reforms and de-regulation to restore confidence and drive growth'. She added: 'Companies continue to battle cost increases – particularly arising from the national minimum wage and National Insurance contribution changes – and many are frustrated that while the Government has been quick to raise costs for business, it has been much slower to deliver improvements to the wider business environment. 'Last year, damaging speculation around tax rises in the lead-up to the 2024 Budget caused many firms to pause investment and hiring decisions – contributing to six months of near-zero economic growth. 'We're now living with the economic consequences of those tax hikes, even as uncertainty around future costs once again builds. With ripple effects through the economy from tax changes and signs of consumer retrenchment, many firms report that they are struggling to plan amid a cacophony of risk.' Mel Stride, the shadow chancellor, urged Ms Reeves to 'heed the calls from the Institute of Directors and put to bed speculation about more damaging tax rises'. The economy shrank in April and May, while unemployment is rising and job vacancies are falling as companies cut back spending. October's £25bn raid on employers' National Insurance contributions shocked businesses. The tax rate was increased from 13.8pc to 15pc, and the earnings threshold at which it kicks in was reduced, taking in more part-time workers. The tax rise came into force in April, alongside a 6.7pc increase in the national living wage. Economists estimate that Ms Reeves will have to raise taxes or cut spending to the tune of £20bn or more in the Budget to maintain the buffer against her borrowing rules. But the Government has struggled to make even modest savings, performing about-turns on welfare reform and on the winter fuel payments to pensioners. Two thirds of businesses told the IoD they need action on taxes from the Government, with 64pc calling for help with the cost of employment. Half said they want less red tape, and 39pc said they need lower energy bills. An HM Treasury spokesman said: 'UK business confidence is the highest in 10 years, according to a Lloyds Bank survey published only this week. Since the election, we have struck three major trade deals with the EU, US and India, more than £1bn has been invested to fix our national infrastructure and the Bank of England has cut interest rates four times. 'And because of the tax decisions we took at the Budget last year, we have been able to deliver on the priorities of the British people, from investing in the NHS to cutting lists as we deliver on the Plan for Change.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. 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
Telegraph
3 hours ago
- Business
- Telegraph
Business confidence worse than during Covid
Business confidence has plunged to an all-time low to surpass the pandemic and Liz Truss's mini-Budget after Rachel Reeves unleashed record taxes on employers. Bosses said they were 'frustrated' that the Chancellor had hit businesses with a barrage of cost increases while failing to improve the economic backdrop. The survey published by the Institute of Directors (IoD) showed the share of business leaders reporting they were pessimistic about the economic outlook exceeded those who were optimistic by 72pc. It means bosses are at their most pessimistic since the monthly survey started running in 2016, to outstrip the Covid lockdowns, fraught Brexit negotiations and the aftermath of Ms Truss's disastrous mini-Budget. Andrew Griffith, the shadow business secretary, accused the Government of 'attacking private enterprise with the zeal of a Left-wing student union'. He added: 'Instead of the cuts in spending which are urgently needed, this socialist Government hits businesses with higher taxes, raised energy costs and more trade-union inspired red tape. 'A year ago businesses faced a summer of uncertainty followed by massive tax hikes. Like a bad horror move franchise, the Chancellor seems determined to release a sequel.' Businesses are slashing investment plans and expect to cut back the number of staff they employ, amid falling revenues and soaring costs. Anna Leach, the IoD's chief economist, urged the Chancellor to 'urgently quash rumours of further tax rises for business this autumn, and accelerate planning reforms and de-regulation to restore confidence and drive growth'. She added: 'Companies continue to battle cost increases – particularly arising from the national minimum wage and National Insurance contribution changes – and many are frustrated that while the Government has been quick to raise costs for business, it has been much slower to deliver improvements to the wider business environment. 'Last year, damaging speculation around tax rises in the lead-up to the 2024 Budget caused many firms to pause investment and hiring decisions – contributing to six months of near-zero economic growth. 'We're now living with the economic consequences of those tax hikes, even as uncertainty around future costs once again builds. With ripple effects through the economy from tax changes and signs of consumer retrenchment, many firms report that they are struggling to plan amid a cacophony of risk.' Mel Stride, the shadow chancellor, urged Ms Reeves to 'heed the calls from the Institute of Directors and put to bed speculation about more damaging tax rises'. The economy shrank in April and May, while unemployment is rising and job vacancies are falling as companies cut back spending. October's £25bn raid on employers' National Insurance contributions shocked businesses. The tax rate was increased from 13.8pc to 15pc, and the earnings threshold at which it kicks in was reduced, taking in more part-time workers. The tax rise came into force in April, alongside a 6.7pc increase in the national living wage. Economists estimate that Ms Reeves will have to raise taxes or cut spending to the tune of £20bn or more in the Budget to maintain the buffer against her borrowing rules. But the Government has struggled to make even modest savings, performing about-turns on welfare reform and on the winter fuel payments to pensioners. Two thirds of businesses told the IoD they need action on taxes from the Government, with 64pc calling for help with the cost of employment. Half said they want less red tape, and 39pc said they need lower energy bills. An HM Treasury spokesman said: 'UK business confidence is the highest in 10 years, according to a Lloyds Bank survey published only this week. Since the election, we have struck three major trade deals with the EU, US and India, more than £1bn has been invested to fix our national infrastructure and the Bank of England has cut interest rates four times. 'And because of the tax decisions we took at the Budget last year, we have been able to deliver on the priorities of the British people, from investing in the NHS to cutting lists as we deliver on the Plan for Change.'
Daily Mail
8 hours ago
- Business
- Daily Mail
British businesses 'are facing a cacophony of risk': Labour's sent confidence to an all-time low, bosses say
Business confidence has collapsed to its lowest level on record as firms face a 'cacophony of risk' under Labour, bosses of industry warned last night. In a report that raises fresh questions over Rachel Reeves ' handling of the economy, the Institute of Directors said optimism has evaporated in the face of higher taxes, rising employment costs and red tape. Bosses called on the Chancellor to 'urgently quash rumours of further tax rises for business this autumn' to help restore shattered confidence – now lower than during Covid lockdowns. Critics argue the £25 billion increase in employer national insurance (NI) contributions and higher minimum wage meted out in last October's Budget have hammered the wider economy – snuffing out growth, costing jobs and driving up prices. While the economy is slowing, inflation is the highest in the G7 at 3.6 per cent and unemployment has surged to a four-year high of 4.7 per cent. Next chief executive Simon Wolfson yesterday said he expects 'UK employment opportunities to continue to diminish' this year following the NI hike. 'We believe that this will increasingly dampen consumer spending as the year progresses,' he added. The IoD's monthly Economic Confidence Index crashed to minus 72 in July from minus 53 in June. That was the lowest reading since the survey started in July 2016. The index stood at plus 7 in July last year – underlining just how fast confidence has collapsed under Labour. IoD chief economist Anna Leach urged Labour to rule out further tax hikes on business. 'Damaging speculation around tax rises in the lead-up to the 2024 Budget caused many firms to pause investment and hiring decisions – contributing to six months of near-zero economic growth,' she said. 'With ripple effects through the economy from tax changes and signs of consumer retrenchment, many firms report that they are struggling to plan amid a cacophony of risk. 'The Government must urgently quash rumours of further tax rises for business this autumn.' Tory business spokesman Andrew Griffith said: 'Labour have spent the last year attacking private enterprise with the zeal of a Left-wing student union so it's no surprise IoD members have lost confidence.
Reuters
16-07-2025
- Business
- Reuters
Japan manufacturers' sentiment improves in July despite tariff woes: Reuters Tankan poll
TOKYO, July 16 (Reuters) - Japanese manufacturers' business confidence improved slightly in July and is expected to strengthen further in the coming months despite ongoing concerns about U.S. tariffs, thanks to recovery in the semiconductor sector, a Reuters Tankan poll showed. The monthly poll, which tracks the Bank of Japan's quarterly tankan business survey, showed the manufacturers' sentiment index rising to plus 7 in July from plus 6 in June, while the service-sector index remained unchanged at plus 30 for the third consecutive month. Manufacturers expect sentiment to improve further to plus 8 by October, while service firms forecast their outlook will soften to plus 27, according to the July 2-11 survey of 497 major non-financial companies, of which 241 responded on condition of anonymity. Among manufacturers, the electronics machinery sector index improved to minus 4 in July from minus 16 in June, and chemicals rose to plus 18 from plus 12, with some citing the ameliorating chip demand. "There's brightness visible in some parts of the semiconductor industry, though other areas remain stagnant," a rubber maker manager said. In contrast, the transport machinery sector, which includes Japan's crucial car industry, saw its index falling to plus 9 from plus 20 in June, with some managers referring to the impact of U.S. 25% auto tariffs on export volumes and costs. Although overall sentiment remains in positive territory, manufacturers continue to monitor potential risks from U.S. trade policies. "While there are predictions among our users that the impact of Trump's tariffs can be negative, for now we're in a wait-and-see situation," a paper and pulp industry manager said, highlighting the prevailing uncertainty. Some expressed concern about investment appetite. "Our customers are becoming cautious about capital expenditure due to economic slowdown caused by U.S. tariffs and uncertainty in the Middle East situation," one machinery maker manager noted. The service sector was mixed overall, with wholesalers' confidence improving but the sentiment of property, retail, IT and transport sectors down from June. A retail company manager noted an ambivalent mood, with supermarkets benefiting from higher customer spending on successful price hikes, while department stores suffered from a decline in sales compared to last year's surge in inbound tourism. The poll results come as Japan's export-dependent economy faces headwinds from global trade tensions. Japan's economy shrank in the first quarter on lukewarm consumption. Exports fell in May for the first time in eight months, stoking fears of a recession, defined as two straight quarters of contraction.
