Latest news with #servicesSector
Irish Times
4 days 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
Daily Mail
5 days ago
- Business
- Daily Mail
Services sector returns to growth in major boost to UK economy
Britain's services sector returned to tepid growth last month after jitters about Donald Trump's tariffs caused the sector to shrink in April for the first time in a year and a half. The closely-watched S&P Global Purchasing Managers' Index for Britain's services sector increased to 50.9 in May from 49.0 in April, and above an earlier flash estimate of 50.2. The upward revision also lifted the composite PMI, which includes the smaller manufacturing sector, taking it above the 50 mark which divides growth from contraction. Tim Moore, S&P's global economics director, said: 'Receding concerns about US tariffs, recovering global financial markets and greater confidence among clients all helped to support output growth.' April's sharp drop in export orders substantially reversed itself while overall new orders also fell at a slower rate than the month before, helping lift expectations for future output to their highest since October. Britain's economy grew by a stronger-than-expected 0.7 per cent in the first quarter of this year but the Bank of England said on Tuesday that it expected growth to slow, partly due to the downbeat message from a range of business surveys. Uptick: Britain's services sector returned to tepid growth last month, data shows Thomas Pugh, economist at RSM, UK said the combination of a rolling back of some US tariffs, a recovery in financial markets and stronger PMIs #suggests the economy began to recover in May'. He added: 'The positive news was that business sentiment across the economy seems to have rebounded. 'What's more, the input and output cost balances both dropped sharply, suggesting that the jump in employment costs in April aren't continuing to put upward pressure on prices.' But Pugh cautioned that growth is 'likely to be bumpy this year' with Britain facing tariffs, uncertainty and taxes that it didn't have in the first quarter, which 'probably marked the highpoint for the year'. The latest PMI figures showed continued pressure on businesses from labour costs, reflecting a near 7 per cent increase in the minimum wage and an increase in employers' national insurance contributions. Both increases, which are the result of last year's budget, most affect firms employing large numbers of lower-paid or part-time staff. Businesses have cut staff numbers in each of the past eight months - largely by not replacing staff who left - although May's pace of decline was the smallest in six months. Firms' costs rose less than in April but still at a rapid pace, which they again largely attributed to higher labour costs, while prices charged rose at the slowest rate in seven months due to increased competitive pressures. That is likely to reassure the Bank of England, which is concerned that rapid wage growth will make it hard to get inflation back to its 2 per cent target. S&P's Moore 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. 'Optimism reached its highest level since October 2024, which reflected forthcoming business investment plans alongside hopes of a turnaround in sales pipelines and improving domestic economic prospects.' He added: 'While rising wages were again the most commonly reported factor pushing up input prices, the overall rate of cost inflation eased from April's 21-month high. 'Softer cost inflation and intense competitive pressures contributed to the slowest rise in price charged by service providers since last October.' On Tuesday, Bank of England governor Andrew Bailey suggested dreary business surveys indicated the economy looked set to weaken. In an appearance in front of the Treasury Select Committee, Bailey said: 'We have had more volatile short run GDP numbers of late. 'The challenge we have at the moment is that the forward-looking sort of evidence on activity in the economy – so the surveys – are nothing like as strong as that.' The governor described a 'disjoint' between official growth data and forward-looking expectations.
Bloomberg
6 days ago
- Business
- Bloomberg
Euro-Zone Inflation Slows Below 2%, Backing More ECB Rate Cuts
Euro-area inflation eased more than expected, dipping below the European Central Bank's 2% target and supporting the case for interest rates to be lowered further. Consumer prices rose 1.9% from a year ago in May, down from 2.2% in April and below the 2% median estimate in a Bloomberg survey of economists, data Tuesday showed. A core gauge excluding volatile items like food and energy moderated to 2.3%, while pressures in the closely watched services sector cooled markedly.
Malay Mail
13-05-2025
- Business
- Malay Mail
Malaysia's services sector up 6pc y-o-y in 1Q 2025, says Stats Dept
KUALA LUMPUR, May 13 — Malaysia's services sector grew by 6.0 per cent year-on-year in the first quarter of 2025 (1Q 2025), reaching RM630 billion in revenue, according to the Department of Statistics Malaysia (DoSM). Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth was supported by positive performance across all segments of the services sector such as the wholesale and retail trade, food and beverages, as well as the accommodation segment recorded an increase of RM24.2 billion or 5.3 per cent, reaching RM475.7 billion. 'This robust expansion was driven by higher consumer spending and a rise in domestic travel, spurred by seasonal events such as Chinese New Year celebrations, preparations for Ramadan and Aidilfitri, as well as the reopening of the school year. 'Additionally, a 31.3 per cent year-on-year (y-o-y) increase in international arrivals, reaching 6.7 million in the first two months of this year, further bolstered this growth,' he said in a statement today. Mohd Uzir said the services sector's performance was further supported by notable growth in the information and communication as well as transportation and storage segments, which expanded by 5.9 per cent y-o-y to reach RM87.9 billion in the first quarter. He said the information and communication subsector recorded a growth of 3.3 per cent, driven primarily by telecommunications activity, which rose by 3.8 per cent and contributed 63.5 per cent to the total value of the subsector. 'This growth trend is in line with the increasing demand for digital connectivity and data services, reflecting the ongoing digitalisation efforts across industries and greater reliance on telecommunication services,' he said. Besides, the chief statistician reported that Malaysia's e-Commerce income for the first quarter hit RM310.6 billion, marking a 3.4 per cent y-o-y increase, primarily driven by a 6.0 per cent rise in the services sector. 'This growth highlights the continued expansion of e-commerce in supporting services output and consumer activity. 'The total number of persons engaged in this sector stands at 4.5 million, an increase of 1.9 per cent year-on-year. This growth was led by the transport and storage subsector which saw an increase of 3.5 per cent, followed by the wholesale and retail trade subsector which grew by 2.4 per cent,' he noted. Meanwhile, total salaries and wages increased by 4.1 per cent y-o-y to register RM33.6 billion. The increment was attributed to the wholesale and retail trade as well as the transportation and storage subsectors which rose 3.9 per cent and 4.8 per cent respectively. In conclusion, Malaysia's progression toward a high-value, knowledge-based economy continues to be underpinned by the services sector, which remains a key driver of national growth. 'Sustained by resilient consumer demand and accelerated digitalisation, strategic focus on tourism development, technological innovation, and business facilitation will be instrumental in maintaining growth momentum and strengthening Malaysia's position as a competitive and forward-looking economic hub in the region,' he added. — Bernama
Bloomberg
07-05-2025
- Business
- Bloomberg
India-UK Trade Deal Shows Globalization Is Ticking Along
President Donald Trump may say 'tariffs' are his favorite word, but the rest of the world doesn't have to agree. With or without America, trade deals continue to be signed: On Tuesday, India finalized a pact with the UK after three years of negotiations. Perhaps India found it easier to drop tariffs with the UK because neither is good at making things anymore. Manufacturing is not globally competitive in either India or Britain. Both have world-beating services sectors, though. It will be interesting to see if the fine print exposes powerful interest groups like New Delhi's law firms to competition.
