Latest news with #contraction
Bloomberg
2 days ago
- Business
- Bloomberg
China's Rare Lending Slump Feeds Worry on Slower Economic Growth
China's first contraction in outstanding loans since 2005 has crystallized worries about a deepening downturn for the world's second-largest economy. Instead of putting money to work, households and companies are paying down their debt as they take a more dim view of their prospects, threatening a self-fulfilling cycle of economic underperformance. The longest deflation streak since at least the 1990s is also suppressing demand for borrowing, contributing last month to a 430 billion-yuan ($60 billion) decline in loans to the real economy — the most on record going back to 2002.
Reuters
05-08-2025
- Business
- Reuters
Kenya's private sector activity contracts in July at steepest rate in a year
NAIROBI, Aug 5 (Reuters) - Kenya's private sector contracted at the fastest pace in a year in July as input prices rose and protests disrupted some businesses, a survey showed on Tuesday. The Stanbic Bank Kenya Purchasing Managers' Index fell to 46.8 in July from 48.6 a month earlier. Readings above 50.0 indicate growth in business activity, while those below that signal contraction. "The decline was largely concentrated in the manufacturing and services sectors, conflicting with higher output across agriculture, construction and wholesale & retail," Stanbic said in comments accompanying the survey. "Businesses reportedly curbed their output because of lower sales volumes, cash flow problems, political unrest and accelerating inflationary pressures." July's PMI reading marked the steepest drop in operating conditions since July 2024. In early July, at least 31 people died in demonstrations in Nairobi and other towns held to mark the 35th anniversary of the country's first major pro-democracy rallies seeking an end to single-party rule. Kenya's consumer inflation (KECPI=ECI), opens new tab rose to 4.1% year-on-year in July, compared with 3.8% the previous month, data from the statistics office showed.
Free Malaysia Today
02-08-2025
- Business
- Free Malaysia Today
US factory activity lowest in 9 months with sluggish demand
US manufacturing activity contracted for a fifth consecutive month in July. (EPA Images pic) WASHINGTON : US manufacturing activity contracted for a fifth consecutive month in July, survey data showed Friday, logging its lowest reading in nine months amid tepid demand and cautious hiring. The Institute for Supply Management's (ISM) manufacturing index came in at 48% last month, down from 49% in June and remaining below the 50% reading that would indicate the sector is expanding. Declines in the supplier deliveries and employment indexes were the biggest factors behind the drop, ISM survey chair Susan Spence said in the report. The index for new orders contracted at a slower rate, while there were quicker supplier deliveries 'as supply chain performance improved and sluggish demand continued', the report said. 'The employment index dropped further into contraction as panelists indicated that managing head count is still the norm at their companies, as opposed to hiring,' it added. A respondent in the apparel sector said: 'These tariff wars are beginning to wear us out. It's been very difficult to forecast what we will pay in duties and calculate any cost savings we've had this year.' Another respondent, in the machinery industry, said: 'Currently, higher interest rates still depress the construction industry for new construction projects.'
Reuters
01-08-2025
- Business
- Reuters
Poland's manufacturing sector contracts sharply in July, PMI shows
Aug 1 (Reuters) - Poland's manufacturing sector continued to contract sharply in July, although the pace of decline eased slightly compared to June, a survey showed on Friday. The S&P Global Poland Manufacturing PMI registered 45.9 in July, up from 44.8 in June, indicating a marked deterioration in business conditions, S&P Global reported. The July result was in line with a Reuters poll forecast. PMI readings above 50.0 indicate growth in activity, while those below that level point to a contraction. Despite the slight improvement, July's PMI was the second-strongest contraction since mid-2024, reflecting ongoing challenges for Polish manufacturers. New orders fell for the fourth consecutive month, although the rate of contraction eased since June. Export orders were particularly weak, declining at the steepest rate since August 2023, with Germany often cited as a source of weakness. Employment in the sector was cut for the fifth time in 2025, although the rate of job shedding cooled compared to previous months. Manufacturers also reduced input buying at the fastest pace since October 2023, leading to a further decrease in input stocks. "Poland's manufacturers reported a further marked deterioration in operating conditions in July," said Trevor Balchin, Economics Director at S&P Global Market Intelligence. Despite the downturn, output expectations for the next 12 months showed some recovery, with nearly one-third of firms anticipating growth, up from 24% in June. However, optimism remained subdued, with U.S. tariffs and competition from Asia posing threats to sales. "The July data did at least suggest the worst of the current downturn may have passed, however, with slower declines in output, new orders and jobs, with the 12-month outlook rebounding," said Balchin.
Wall Street Journal
01-08-2025
- Business
- Wall Street Journal
China's Manufacturing Activity Tumbles Into Contraction
A private gauge of China's manufacturing activity returned to contractionary territory in July, as softening new business growth led factories to scale back production. The S&P Global China general manufacturing purchasing managers index declined to 49.5 in July from 50.4 in June, according to data released Friday by S&P Global. A reading above 50 suggests an expansion in activity, while a reading below suggests contraction.
