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Business Times
5 hours ago
- Business
- Business Times
US core capital goods orders unexpectedly fall in June
[WASHINGTON] New orders for key US-manufactured capital goods unexpectedly fell in June, suggesting a pullback in business spending on equipment as the boost from front-loading of activity ahead of tariffs on imports faded. Non-defence capital goods orders excluding aircraft, a closely watched proxy for business spending plans, dropped 0.7 per cent last month after an upwardly revised 2.0 per cent rebound in May, the Commerce Department's Census Bureau said on Friday (Jul 25). Economists had forecast these so-called core capital goods orders would rise 0.2 per cent after a previously reported 1.7 per cent jump in May. Shipments of core capital goods increased 0.4 per cent after rising 0.5 per cent in May. Business spending on equipment accelerated sharply in the first quarter amid front-running ahead of President Donald Trump's aggressive and broad tariffs on imports. While some of the tariff-related spending to avoid even higher goods prices has persisted, uncertainty over where tariff levels will eventually settle has prompted some businesses to hold off capital expenditures. A survey from S&P Global on Thursday showed its flash manufacturing PMI contracted in July for the first time since December. S&P Global noted that 'any protectionist benefits of import tariffs were often outweighed by concerns over higher prices and rising costs.' The Atlanta Fed is forecasting economic growth will rebound at a 2.4 per cent annualised rate in the second quarter, largely reflecting a reversal in import flows, which contributed to GDP contracting at a 0.5 per cent pace in the first quarter. REUTERS
News18
11 hours ago
- Business
- News18
India's Private Sector Growth Stays Strong In July, Manufacturing PMI Hits Over 17-Year High
Last Updated: July's HSBC Flash India Composite Purchasing Managers' Index, compiled by S&P Global, stands at 60.7, which is well above the 50-level that separates growth from contraction. India's private sector continued to expand at a solid pace in July, backed by strong performance in manufacturing and firm overseas demand, according to the latest HSBC Flash India Composite PMI released by S&P Global. Manufacturing remained the key growth driver. The HSBC Flash India Manufacturing PMI rose to 59.2 — the highest level in over 17 years — from 58.4 in June. The HSBC Flash India Composite Purchasing Managers' Index, compiled by S&P Global, stood at 60.7 in July. Though it is slightly lower than June's 61.0, but remains well above the 50-mark that separates growth from contraction. With this, the composite PMI remains in expansion mode for four straight years. 'India's flash composite PMI remained healthy in July at 60.7. The strong performance was bolstered by growth in total sales, export orders, and output levels. Indian manufacturers led the way, recording faster rates of expansion than services for all of the three aforementioned metrics," said Pranjul Bhandari, Chief India Economist at HSBC. The survey pointed to a surge in new orders, especially from global clients in Asia, Europe, and the US, with demand for Indian manufactured goods nearing a five-year high. However, despite the upbeat data, firms turned cautious. 'Meanwhile, inflationary pressures continue to heat up as both input costs and output charges rose in July," Bhandari said. Input costs and selling prices rose in July, with businesses reporting higher costs for essential materials such as aluminium, cotton, and food items. These cost pressures are now being passed on to consumers, raising concerns over household budgets and the inflation outlook. While retail inflation eased to a six-year low last month due to cooling food prices, fresh price pressures could limit the Reserve Bank of India's ability to cut interest rates further to support the economy. Though manufacturing remained the key growth driver, the services sector saw some cooling, with its index slipping to 59.8 from 60.4, although it still points to strong activity. Meanwhile, according to a recent Morgan Stanley report, India is on track to become the world's third-largest economy by 2028 and more than double its GDP to $10.6 trillion by 2035. The report also highlighted the pivotal role that Indian states will play in steering this economic transformation. Over the next decade, India is expected to contribute 20% to global growth, becoming a major engine for earnings among multinational corporations, the report said. India has already surpassed Japan to become the world's fourth-largest economy according to IMF data, NITI Aayog CEO BVR Subrahmanyam announced in May 2025. According to the IMF, India's GDP is currently $4.187 trillion, overtaking Japan's $4.186 trillion. Separately, JP Morgan in its latest report said India has emerged as a relatively safe haven among emerging markets (EMs) amid global trade uncertainties. The report highlighted that India is benefiting from a combination of falling inflation, improved system liquidity, and lower government borrowing, which are expected to support economic growth. The report adds that India is expected to post the highest GDP growth among countries in JP Morgan's global universe in 2025. Growth is also being supported by timely demand stimulus and measures that have strengthened urban household balance sheets. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Business Recorder
15 hours ago
- Business
- Business Recorder
PMI streamlines local operations: PMPKL takes steps to delist from PSX
KARACHI: Philip Morris (Pakistan) Limited (PMPKL), the local arm of global tobacco giant Philip Morris International (PMI), has formally taken steps to delist from the Pakistan Stock Exchange (PSX), signaling a major shift in its corporate strategy. The move, aimed at consolidating operations and enhancing group-level efficiency, has reached a critical stage with the company's buyback offer now disclosed in line with voluntary delisting requirements. In a notice issued to the Pakistan Stock Exchange, PMPKL reiterated that the delisting proposal was first approved by its Board of Directors at a meeting held on March 25, 2025, in Karachi. Under Rule 5.14 of the PSX Voluntary Delisting Rules, the board resolved to initiate the delisting process. As part of this transition, Philip Morris Investments B.V., the company's majority shareholder and sponsor, has committed to buying back 1,444,931 shares from minority shareholders at the price of Rs 1300 per share. Philip Morris Brands SARL, the co-sponsor, will retain its shareholding in the now private entity. This move marks a significant milestone in the journey of PMPKL, which originally entered the Pakistani market by acquiring Lakson Tobacco Company Limited, subsequently rebranding to its current identity on February 25, 2011. The company is engaged in the manufacture and sale of cigarettes and tobacco products, and has operated under the banner of one of the world's leading tobacco firms. Analysts noted that the intended delisting reflects a broader trend among multinational entities reassessing the viability and regulatory landscape of public listing in emerging markets. The move, once completed, will make Philip Morris Pakistan a privately held company again — allowing its sponsors more direct operational control in a challenging regulatory and fiscal environment. Market observers view the step as part of a global realignment by PMI to optimize capital structures and reduce reporting burdens across its emerging market entities. Copyright Business Recorder, 2025
Hans India
16 hours ago
- Business
- Hans India
PMI composite index on strong note in June
New Delhi: India's private sector showed robust growth in July, fuelled by strong manufacturing and global demand, the HSBC Flash India Composite Purchasing Managers' Index (PMI) showed on headline HSBC Flash India Composite PMI Output Index, compiled by S&P Global, rose to 60.7 in July from 58.4 in June. The Manufacturing PMI index climbed to 59.2 in July from 58.4 in June - its highest level in nearly 17-and-a-half years. The Services PMI was 59.8 in July, down from 60.4 in June. While services activity continued to grow, the pace of expansion softened, according to the note. 'India's flash composite PMI remained healthy in July at 60.7. The strong performance was bolstered by growth in total sales, export orders, and output levels. Indian manufacturers led the way, recording faster rates of expansion than services for all of the three aforementioned metrics,' said Pranjul Bhandari, chief India economist at HSBC. International orders received by private sector firms in India rose sharply at the start of the second fiscal quarter (Q2 FY26). 'Meanwhile, inflationary pressures continue to heat up as both input costs and output charges rose in July. Finally, business confidence fell to its lowest mark since March 2023, while employment growth moderated,' Bhandari Indian companies remained optimistic about output growth over the next 12 months. There is a firm pick-up in employment, especially in the service sector, suggesting healthy job creation accompanies the expansion of both India's manufacturing and service sectors, according to the note. While goods producers indicated the slowest increase in output for three months during May, service providers reported the fastest rise since March the composite level, the latest upturn was the quickest in just over a year. Monitored companies attributed growth to buoyant demand, investment in technology and expanded capacities, said the HSBC survey.
Yahoo
17 hours ago
- Business
- Yahoo
Do Q2 Reports Shape a More Uncertain Outlook?
If you think there are no signs of tariffs inside the current U.S. macro system, you may have to think get more on that now from our Chief Equity Strategist and Economist, John Blank. 1. Each month, you highlight a section, found within the latest Zacks Market Strategy report. This month it's the Institute of Supply Management's (ISM) manufacturing purchasing manager indices (PMI). Is that where the most striking tariff dynamics caught your attention? 2. Where within that data are these tariff signs located? 3. According to the purchasing managers, where in the system is the impact of this data being felt, in the economy, markets? 4. Stronger than expected retail sales numbers out last week don't seem to indicate tariffs are affecting consumer spending habits yet. That seems like a positive, correct? 5. Earnings are rolling in. At the start of April, Q2 earnings estimates have declined for 13 of the 16 Zacks sectors. That's when estimates for Q2 had come under severe pressure with the announcement of reciprocal tariffs in early April prompting analysts to materially lower their earnings expectations. Since then, our Research Director Sheraz Mian, says the revisions trend stabilized later in the quarter with estimates increasing slightly for a few sectors. Does that negate the ISM data at all? 6. What impact do you see this data having on the Zacks Sector Rankings? 7. What about tariff lead impact to stocks? They're on a winning streak, near all time highs. Have investors mostly ignored the tariff story? 8. Do you see that turning around near-term? 9. Speaking of stocks, three major multi-nationals are on your radar. Two are not based in the U.S. Among them, Seven and I Holdings Co. (SVNDY), The Estee Lauder Companies (EL) and Bayer AG (BAYRY). Our Chief Equity Strategist and Economist, John Blank, on signs of tariffs inside the U.S. macro system. With John, I'm Terry Ruffolo. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report Seven and I Holdings Co. (SVNDY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
