Latest news with #serviceSector
The Independent
4 days ago
- Business
- The Independent
UK service sector returns to growth as tariff concerns ease
Activity in the UK's service sector returned to growth last month amid improving customer confidence and reduced tariff concerns, figures show. However, firms also reported a slowdown in price inflation for the month despite recent cost increases, such as higher wage bills. The S&P Global UK services PMI survey scored 50.9 in May, rising from the 27-month low of 49.0 reported in April. Any reading above 50 means the sector is growing, while a score below means it is contracting. The new figure was stronger than the 50.2 reading predicted by a consensus of economists. Tim Moore, economics director at S&P Global Market Intelligence, said: 'The service sector regained its poise in May as receding concerns about US tariffs, recovering global financial markets and greater confidence among clients all helped to support output growth. 'Although only marginal, the upturn in service sector activity was stronger than first estimated in May. 'Output growth expectations for the year ahead also rebounded after April's tariff-related slump.' It comes after the US and UK governments agreed an arrangement which will reduce previously-expected tariffs on a raft of goods being imported to America. In May, the US said UK aluminium and steel imports are set to be tariff-free once a trade deal between the nations in ratified, while a set number of car imports will also face lower rates. The report also showed optimism among businesses rose to its highest level since October 2024, reflecting improving hopes about domestic trade. Nevertheless, service companies also highlighted that elevated business uncertainty and pressure on budgets linked to higher labour costs 'continued to dampen demand'. Companies in the sector reported total new work decreased for the fourth time in the past five months despite export sales broadly stabilising. Meanwhile, the overall rate of inflation in the sector eased slightly but was still close to levels not seen since the summer of 2023, with firms linking this to increases in the national minimum wage and national insurance contributions. However, inflation on prices charged to customers dropped to a seven-month low due to increased competition. Rob Wood, chief UK economist at Pantheon Macroeconomics, said: 'UK growth has passed the worst as President Trump walking back his more ruinous tariffs cuts the panic that took hold in April. 'Take out the overly large response of business sentiment to uncertainty, as well as smoothing through volatility, and services business sentiment has been steady since October at a level consistent with only slightly below potential GDP growth. 'We estimate that the average PMI in April and May points to a much stronger final estimate of 0.5% quarter-to-quarter GDP growth once we control for uncertainty.'
Yahoo
4 days ago
- Business
- Yahoo
Italy service sector sees stronger growth in May, PMI shows
ROME (Reuters) -Italy's service sector expanded for a sixth month running in May and at the fastest pace for nearly a year, a survey showed on Wednesday, offering hope for firmer growth in the euro zone's third-largest economy. The HCOB Purchasing Managers' Index (PMI) for services rose to 53.2 in May from 52.9 in April, beating expectations and moving further above the 50.0 threshold that separates growth from contraction. A Reuters survey of 11 analysts had pointed to a reading of 52.0. Hamburg Commercial Bank economist Nils Muller said the highest services PMI reading since June last year was "underpinned by resilient domestic demand and a steady inflow of new business." The survey's new business subindex came in at 52.4, down from 52.7 in April but still clearly above the 50 threshold, while the services employment indicator rose to 52.2 from 51.2. "While the pace of new order growth softened slightly, it remained elevated by historical standards, suggesting that the recovery is gaining traction," Muller said. HCOB's sister survey for the manufacturing sector, published on Monday, showed contraction for a 14th straight month in May, but offered some signs of stabilisation. The composite PMI, combining manufacturing and services, climbed to 52.5 in May from 52.1 the month before, posting the highest reading since April 2024. Italian gross domestic product increased by 0.3% in the first quarter from the previous three months, national statistics bureau ISTAT reported last week. The latest moderately positive signs come after Prime Minister Giorgia Meloni's government in April halved its forecast for full-year growth in 2025 to 0.6%, in the face of mounting uncertainty linked to U.S. trade policies. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Reuters
4 days ago
- Business
- Reuters
Italy service sector sees stronger growth in May, PMI shows
ROME, June 4 (Reuters) - Italy's service sector expanded for a sixth month running in May and at the fastest pace for nearly a year, a survey showed on Wednesday, offering hope for firmer growth in the euro zone's third-largest economy. The HCOB Purchasing Managers' Index (PMI) for services rose to 53.2 in May from 52.9 in April, beating expectations and moving further above the 50.0 threshold that separates growth from contraction. A Reuters survey of 11 analysts had pointed to a reading of 52.0. Hamburg Commercial Bank economist Nils Muller said the highest services PMI reading since June last year was "underpinned by resilient domestic demand and a steady inflow of new business." The survey's new business subindex came in at 52.4, down from 52.7 in April but still clearly above the 50 threshold, while the services employment indicator rose to 52.2 from 51.2. "While the pace of new order growth softened slightly, it remained elevated by historical standards, suggesting that the recovery is gaining traction," Muller said. HCOB's sister survey for the manufacturing sector, published on Monday, showed contraction for a 14th straight month in May, but offered some signs of stabilisation. The composite PMI, combining manufacturing and services, climbed to 52.5 in May from 52.1 the month before, posting the highest reading since April 2024. Italian gross domestic product increased by 0.3% in the first quarter from the previous three months, national statistics bureau ISTAT reported last week. The latest moderately positive signs come after Prime Minister Giorgia Meloni's government in April halved its forecast for full-year growth in 2025 to 0.6%, in the face of mounting uncertainty linked to U.S. trade policies.
Reuters
5 days ago
- Business
- Reuters
Japan's service sector growth slows in May, PMI shows
TOKYO, June 4 (Reuters) - 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.
CNA
5 days 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.
