Latest news with #service sector
Bloomberg
05-08-2025
- Business
- Bloomberg
Treasuries Wallow After Cool Reception for Week's First Auction
The Treasuries market remained on the defensive — with most yields slightly higher on the day — after the first of this week's three auctions of new notes and bonds saw poor demand. The auction result validates concern in some quarters of the market that yields had declined too much, and offered inadequate compensation for the risk that inflation data will stand in the way of expected Federal Reserve interest-rate cuts. A gauge of inflation in the US economy's service sector compiled by the Institute for Supply Management unexpectedly increased in July to the highest level since October 2022.
The Guardian
05-08-2025
- 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.'
Yahoo
05-08-2025
- Business
- Yahoo
Japan's service growth picks up in July on upbeat demand, PMI shows
TOKYO (Reuters) -Japan's service sector activity rose at the fastest pace in five months in July, thanks to brisk domestic demand that offset a sharp drop in export orders and weaker tourist numbers, a private sector survey reported on Tuesday. The S&P Global final Japan Services purchasing managers' index (PMI) climbed to 53.6 in July from 51.7 in June, marking the strongest expansion since February. A PMI reading above 50.0 indicates growth in activity, while that below the threshold points to contraction. New service business orders grew at the quickest pace in three months, supported by improved customer numbers, according to the survey. However, new export orders fell for the first time since December and at the fastest rate in over three years due to low tourist numbers in July, it showed. Some survey respondents attributed the weak tourist figures to speculative concerns about an earthquake in July. Employment in the service sector was unchanged from the previous month, ending a 21-month growth streak, with some respondents citing labour shortages and budget constraints as challenges to hiring. Price pressures continued to ease in July. Input cost inflation was the slowest in 17 months, while output costs rose at the softest pace in nine months. The composite PMI, which combines manufacturing and services, rose slightly to 51.6 in July from 51.5 in June, marking the strongest overall business activity growth since February. "However, this reflected a steep increase in business activity at service providers, as factory output fell back into indicators were a little less upbeat in July," said Annabel Fiddes, economics associate director at S&P Global Market Intelligence. The U.S.-Japan trade deal announced last month could lift Japanese firms' confidence and consumption to offer "a much-needed boost to the manufacturing economy", Fiddes added.
CNA
05-08-2025
- Business
- CNA
Japan's service growth picks up in July on upbeat demand, PMI shows
TOKYO :Japan's service sector activity rose at the fastest pace in five months in July, thanks to brisk domestic demand that offset a sharp drop in export orders and weaker tourist numbers, a private sector survey reported on Tuesday. The S&P Global final Japan Services purchasing managers' index (PMI) climbed to 53.6 in July from 51.7 in June, marking the strongest expansion since February. A PMI reading above 50.0 indicates growth in activity, while that below the threshold points to contraction. New service business orders grew at the quickest pace in three months, supported by improved customer numbers, according to the survey. However, new export orders fell for the first time since December and at the fastest rate in over three years due to low tourist numbers in July, it showed. Some survey respondents attributed the weak tourist figures to speculative concerns about an earthquake in July. Employment in the service sector was unchanged from the previous month, ending a 21-month growth streak, with some respondents citing labour shortages and budget constraints as challenges to hiring. Price pressures continued to ease in July. Input cost inflation was the slowest in 17 months, while output costs rose at the softest pace in nine months. The composite PMI, which combines manufacturing and services, rose slightly to 51.6 in July from 51.5 in June, marking the strongest overall business activity growth since February. "However, this reflected a steep increase in business activity at service providers, as factory output fell back into indicators were a little less upbeat in July," said Annabel Fiddes, economics associate director at S&P Global Market Intelligence. The U.S.-Japan trade deal announced last month could lift Japanese firms' confidence and consumption to offer "a much-needed boost to the manufacturing economy", Fiddes added.
Yahoo
24-07-2025
- Business
- Yahoo
Japan's factory activity slips into contraction in July, PMI shows
TOKYO (Reuters) -Japan's manufacturing activity slipped into contraction in July, weighed down by uncertainties over U.S. tariffs, a private-sector survey showed on Thursday. At the same time, Japan's service sector continued to outshine the struggling manufacturing industry, with activity growing at the fastest pace in five months, helped by robust demand. "Business activity across Japan's private sector continued to expand at the start of the third quarter, fuelled by stronger growth of the service sector," said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiles the PMI. The S&P Global Japan manufacturing purchasing managers' index (PMI) dropped to 48.8 in July from June's final reading of 50.1, which was the first time the index exceeded the 50.0 threshold separating expansion from contraction in 13 months. The key sub-indexes of output and new orders dropped at the fastest pace in four and three months, respectively, as businesses assessed the impact from U.S. tariffs, the survey showed. "Uncertainty over future trade policy weighed on expectations regarding the year-ahead," Fiddes said. U.S. President Donald Trump on Tuesday announced a trade deal with Tokyo that he said would result in Japan investing $550 billion into the U.S. and a 15% tariff on imports from the Asian country. Meanwhile, the S&P Global Japan services PMI increased to 53.5 in July from 51.7 in June, thanks to new business growth. However, new export business saw its first contraction in seven months and employment growth rose at the slowest rate in nearly two years. Combining both manufacturing and service activity, the S&P Global Japan composite PMI in July remained unchanged from June's 51.5, the data showed. Sign in to access your portfolio
