Latest news with #servicessector
Yahoo
3 hours ago
- Business
- Yahoo
UK business activity rises to one-year high as services sector leads rebound
Business activity across the UK's private sector has hit a one-year high this month, as the services industry led a summer rebound, according to new survey data. Firms nevertheless have been cutting hiring for 11 months in a row. S&P Global flash UK composite purchasing managers' index (PMI) showed a reading of 53.0 in August, up from 51.5 in July. This was the highest score since August 2024. The flash figures are based on preliminary data. Any score above 50.0 indicates that activity is growing while any score below means it is contracting. Growth this month was primarily driven by the service sector, the largest part of the UK's economy, spanning industries including hospitality, entertainment and culture, finance and real estate. Businesses typically pointed to improved demand conditions after the spring, when the threat of US President Donald Trump's tariff changes was affecting demand from abroad. Services firms have enjoyed new work coming in over August and benefited from rising sales at home and overseas, the survey showed. Chris Williamson, chief business economist for S&P Global Market Intelligence, said economic growth 'continued to accelerate over the summer after a sluggish spring'. He said: 'The services sector has led the expansion, but manufacturing also showed further signs of stabilising.' However, he flagged that the demand environment was 'uneven and fragile' amid 'unease emanating from broader geopolitical uncertainty'. For the UK's manufacturing sector, output continued to decline this month, and firms recorded the sharpest decline in new work since April. Furthermore, total workforce numbers decreased for the 11th month in a row in August, according to the PMI survey. Businesses surveyed have been cutting staffing levels or slowing the pace of hiring in response to greater cost pressures. Input cost inflation rose to the highest rate since May, reflecting higher prices such as for food, transport bills, and international shipping. For another month running, firms said suppliers were passing on higher national insurance contributions through pricing. In turn, private sector businesses have been hiking their own prices charged to customers – particularly those in the services industry as they grapple with higher staff costs.
Zawya
03-07-2025
- Business
- Zawya
India services sector growth hits 10-month high as demand surges, PMI shows
BENGALURU: India's services sector enjoyed its strongest growth in ten months in June, fuelled by robust demand and cooling price pressures, a survey showed on Thursday. The HSBC final India Services Purchasing Managers' Index (PMI), compiled by S&P Global, climbed to 60.4 in June from 58.8 in May, but was a touch lower than a preliminary estimate of 60.7. The PMI threshold of 50.0 separates growth in activity from contraction. The new business sub-index - a key gauge of demand - rose sharply as companies benefited from sustained strength in the domestic market. This came alongside robust growth in export orders even as the pace slowed slightly from May. Overseas demand was underpinned by improvement from the Asian, Middle Eastern and U.S. markets, according to panelists. The strong demand supported continued job creation although employment growth eased from the record-high touched in May. On the pricing front, input cost inflation across the sector cooled to a ten-month low in June with companies primarily citing higher staff wages as the main source of increased expenses. Service providers maintained enough pricing power to pass some of the cost burden to clients. Output price inflation eased from May and was in line with the historical average. However, the business outlook for the coming year weakened to its lowest level in more than two years. The HSBC India Composite PMI, which combines services and manufacturing activity, rose to 61.0 in June from 59.3, marking the fastest expansion in 14 months. The manufacturing PMI data released this week showed factory activity growth accelerated in June, complementing the robust services performance.
Irish Times
03-07-2025
- Business
- Irish Times
Services sector sees ‘significant loss of momentum' in June, AIB finds
Ireland's services sector suffered 'a significant loss of momentum' at the halfway mark of 2025, according to new data from AIB . Activity, new business and employment all rose 'only modestly', the bank said in its monthly pulse check of the sector. Expectations in the industry remained close to post-pandemic lows, it said. International demand contracted for the first time since October 2023, while cost pressures eased to a nine-month low. Furthermore, service providers raised their charges at the slowest rate in more than four years. READ MORE The seasonally adjusted AIB Ireland services business activity index fell to 51.5 in June from 54.7 in May, signalling a modest rate of growth and the weakest rate since January last year. Any score above 50 indicates growth. Only two sectors registered growth of activity in the month. Technology, media and telecoms recording a further sharp expansion of business activity, while business services posted solid results. Transport, tourism and leisure registered a fourth successive monthly decline in activity, and at the fastest rate since October 2023. Financial services contracted for the first time since January 2021. The weaker increase in business activity reflected a loss of momentum in growth of new work in June. The rate of expansion was among the slowest recorded in the current upturn which began in March 2021. Similar to activity, growth in new work was limited to technology, media and telecoms, as well as business services. Transport, tourism and leisure posted a fourth successive decline, while financial services also recorded lower new contracts. International new business across the service economy as a whole fell for the first time since October 2023. Companies increased their workforces at a slower rate in June, in line with weaker gains in new business and total activity. The pace of job creation was the weakest in the current five-month period of hiring growth, and below the long-run survey average. While financial services and business services registered moderate increases, technology, media and telecoms posted broadly no change, while transport, tourism and leisure saw only a fractional rise in staffing. The level of outstanding business declined in June, ending a 16-month sequence of increases. Three sectors posted declines, most notably in financial services. Technology, media and telecoms recorded only a slight increase. Average input prices increased at the weakest rate in nine months, and one that was below the long-run survey trend. Business services and technology, media and telecoms registered the softest cost pressures during the latest period. With demand growth and cost pressures easing, service providers raised their charges at the slowest rate since April 2021. Moreover, business services registered lower charges for the first time in more than four years.
Daily Mail
30-06-2025
- Business
- Daily Mail
Relief for Reeves as 0.7% growth is confirmed for first quarter of 2025… but economists warn slowdown is already hitting amid tax hike fears
was handed some relief today as the economy was confirmed as growing 0.7 per cent in the first quarter. Official figures showed the powerhouse services sector expanding by 0.7 per cent between January and March. Production was also up 1.3 per cent over the three months, although construction recorded a mediocre 0.3 per cent improvement. Overall the expansion was the best in a year. However, economists have been warning that a slowdown is already happening after the impact of Labour 's huge tax raid on businesses and Donald Trump 's trade war. GDP fell by 0.3 per cent in April. Fears are mounting that the Chancellor will have to hike taxes again to fill a burgeoning black hole in the government's spending plans. The situation has been worsened by Keir Starmer 's humiliating U-turns on winter fuel and health and disability benefits. Those two changes alone could leave the Treasury having to find another £4billion a year by the end of the Parliament, while pressure it ramping up for more spending on defence. While quarterly growth was unrevised, the performance in March was slightly better than the 0.2 per cent initially detected, at 0.4 per cent. January saw zero growth and February saw expansion of 0.5 per cent, both unrevised. Liz McKeown, ONS director of economic statistics, said: 'While overall quarterly growth was unrevised, our updated set of figures show the economy still grew strongly in February, with growth now coming in a little higher in March too. 'There was broad-based growth across services while manufacturing also had a strong quarter. 'The saving ratio fell for the first time in two years this quarter, as rising costs for items such as fuel, rent and restaurant meals contributed to higher spending, although it remains relatively strong.'
RNZ News
16-06-2025
- Business
- RNZ News
'Economy hits a brick wall' as services sector continues to decline
The services sector continues to decline. Photo: Unsplash The services sector continues to decline with all indicators consistent with an economy in recession. BusinessNZ Performance of Services Index (PSI) for May was down 4.1 points to 44, which was well below the long-term average of 53. Anything below 50 points indicated contraction. "There are clear warnings that the New Zealand economy has hit a brick wall in Q2 [second quarter], and this is despite the substantial revenue growth flowing from the agriculture sector," BNZ senior economist Doug Steel said. "If there was ever an argument for the provision of further stimulus from the central bank, then this is it." BusinessNZ's chief executive Katherine Rich said the services sector had been contracting for several months, apart from a small expansion in January. All key indicators for May were in contraction with negative comments from two-thirds of respondents. "Many businesses noted reduced demand and falling revenues due to rising costs, economic uncertainty and low consumer confidence she said. "Comments noted customers spending less, delaying decisions, and responding cautiously to inflation interest rates, and broader market instability." Steel said the fall in the PSI followed the sharp decline in the Performance of Manufacturing Index (PMI), which fell to 47.5 in May from 53.3 in April. "Together, they are consistent with the economy returning to recession. We're a long way from forecasting this, but the data are a reminder of just how vulnerable the economy currently is." He said the combined services and manufacturing data looked nothing short of disastrous. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
