Latest news with #SPGlobal
Yahoo
10 hours ago
- Business
- Yahoo
Canada factory PMI falls in June as firms slash production
By Fergal Smith TORONTO (Reuters) -The downturn in Canada's manufacturing sector deepened in June as U.S. tariffs undercut demand, spurring the sharpest cut to output in five years, data on Wednesday showed. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) edged down to 45.6 in June from 46.1 in May, registering the fifth straight sub-50 reading. A level below 50 indicates contraction in the sector. 'Canada's manufacturing economy continued to struggle in the face of tariffs and the ongoing uncertainty related to future trade policies," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. "A lack of new orders underpinned the latest downturn and helped to explain the steepest reduction in production since the height of the pandemic in the spring of 2020." International orders were particularly weak, with the New Export Orders Index falling to 40.2 from 42.0 in May. The output measure was at 42.6, down from 45.2, posting its lowest level since May 2020. Canada sends about 75% of its exports to the United States. It has escaped broad U.S. tariffs imposed in April but faces 50% duties on steel and aluminum exports south of the border. 'Although sentiment improved on hopes of some stability in the year ahead, confidence in the outlook remains subdued and uncertain," Smith said. "Tariffs again drove steep rises in prices and also exacerbated supply-side delays, which intensified during June.' Average lead times for the delivery of inputs lengthened for a 12th straight month and firms continued to reduce their input inventories. The Stocks of Purchases Index declined to 44.6 from 46.2 in May, posting a five-year low. 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
Arab News
a day ago
- Business
- Arab News
Saudi debt markets set to expand further on Vision 2030 reforms: S&P
RIYADH: Saudi Arabia's domestic corporate bond and sukuk markets are set to gain further momentum, fueled by Vision 2030 investments and ongoing regulatory reforms, according to a new analysis by S&P Global. In its latest report, the ratings agency noted that the Kingdom's domestic debt markets have grown steadily over the past five years, with corporate bonds and sukuk issuance more than doubling to $37 billion in the first quarter of 2025, up from $15.5 billion in the same period of 2020. The findings come as Saudi Arabia leads the Gulf Cooperation Council in primary debt issuance. In the first quarter of 2025, the Kingdom accounted for over 60 percent of all GCC sukuk and bond activity, raising $31.01 billion through 41 offerings, according to Kuwait Financial Center, also known as Markaz. Timucin Engin, credit analyst at S&P Global Ratings, said: 'The development of Saudi Arabia's overall financial markets continues to accelerate due to large-scale Vision 2030 investments, regulatory reforms, initiatives to attract overseas funding, and investments in capital markets infrastructure over the past decade.' He added: 'The markets' growth will help companies to diversify their funding bases and secure long-term capital.' In January, an analysis by S&P Global projected that global sukuk issuance would reach between $190 billion and $200 billion in 2025, driven by increased activity in key markets such as Saudi Arabia and Indonesia. While the Kingdom's domestic market has expanded, S&P noted that issuance remains concentrated, with Saudi financial institutions accounting for 65 percent of outstanding corporate debt as of May 25, followed by nonfinancial state-owned entities at 25 percent and private-sector non-financial corporates at 10 percent. The report highlighted the role of the Saudi stock exchange, whose data show that total domestic sovereign and non-sovereign issuance stood at 20.7 percent of gross domestic product in the first quarter of 2025. Corporate issuance alone rose to 3.4 percent of GDP, up from 1.9 percent in 2020, though still below levels seen in more mature emerging markets. S&P Global also cautioned that the potential long-term structural growth of Saudi Arabia's domestic corporate bond market could be affected if geopolitical tensions in the region escalate. 'We also note that the sharp escalation of the Israel-Iran conflict creates high uncertainty for the markets and their outlook in the Middle East,' said the report. It further noted that Saudi Arabia's equity markets have developed more rapidly than its debt markets, as the country's robust banking system has historically provided competitive financing for non-financial corporates, thereby crowding out interest in debt capital markets. Developing debt market According to the report, a developed local debt market enables issuers to access different pools of capital with varied terms and conditions suited to their financing needs. It also complements the equity market by providing financial solutions for local investment activities, thus supporting the broader economy. Additionally, a local debt market attracts both domestic and foreign investors, creating a deeper and more diversified investor base that should enhance funding availability for issuers. In April, Fitch Ratings reported that Saudi Arabia's debt capital market continued its upward trajectory in the first quarter of 2025 despite geopolitical tensions and economic headwinds. According to Fitch, the market reached $465.8 billion by the end of March, marking a 16 percent year-on-year increase, with sukuk accounting for 60.4 percent of the total. The Kingdom's debt market is expected to surpass $500 billion in outstanding value by the end of 2025, supported by strong economic fundamentals, diversified funding strategies, and sustained progress under Vision 2030. In December, Kamco Invest projected that Saudi Arabia will lead the GCC in bond maturities over the next five years, with around $168 billion in Saudi bonds expected to mature between 2025 and 2029 — highlighting the Kingdom's growing role in the region's debt landscape. S&P Global, however, pointed out that liquidity and foreign participation remain limited in Saudi Arabia's financial markets. 'Saudi financial institutions are the main investors and tend to hold the securities until maturity, which explains the limited secondary trading activity,' said the report. It added: 'Despite some growth over the past few years, foreign investors, including investors from the Gulf Cooperation Council region accounted for less than 2 percent of the outstanding listed and unlisted issuance as of first-quarter 2025.' Key initiatives S&P Global also outlined major initiatives undertaken by Saudi authorities to drive capital market development. In 2015, Saudi Arabia resumed issuing instruments denominated in Saudi riyals, marking a return to domestic debt markets. Two years later, the Ministry of Finance — through the National Debt Management Center — launched the riyal-denominated sukuk program. In 2018, NDMC partnered with five local financial institutions as primary dealers to broaden the investor base and improve liquidity in government securities. More local dealers were added in 2021, followed by five international banks in 2022. Most recently, NDMC raised SR2.355 billion ($628 million) through its June sukuk issuance. In May, the Kingdom raised SR4.08 billion via riyal-denominated offerings, a 9.09 percent increase from April and a 54.5 percent jump compared to March. In parallel, the Financial Sector Development Program was launched in 2018 to advance the Kingdom's financial markets, with a particular focus on debt capital markets. Tadawul was restructured into a holding group in 2021 to streamline operations and governance. That same year, a partnership between Edaa and Euroclear enabled international investors to access the Saudi sukuk and bond markets, improving trading, clearing, and settlement processes. S&P also noted continued efforts by Saudi authorities to enhance the regulatory environment, including the enactment of an updated investment law in 2024. The law provides greater protections for investors, including guarantees on fair treatment, property rights, intellectual property safeguards, and the free movement of capital.
Yahoo
2 days ago
- Business
- Yahoo
UK manufacturing downturn eases in June despite continued weak demand
The downturn in UK factory production eased further as the sector delivered its strongest performance for five months, according to new figures. However, firms still cited weak demand amid uncertainty over Government policy, tariffs and the wider global economy. The S&P Global UK manufacturing PMI survey, watched closely by economists, showed a reading of 47.7 in June, up from 46.4 in May. Any reading above 50 indicates that activity is growing while any score below means it is contracting. This was in line with predictions by economists. The survey pointed to a steadying situation for businesses, who said they were also increasingly optimistic. Rob Dobson, director at S&P Global Market Intelligence, said: 'Although the downturn in UK manufacturing continued in June, the latest PMI survey provides signs of conditions stabilising. 'Production, new orders and employment all fell at slower rates, while business optimism picked up to a four-month high. 'That said, any hoped-for stabilisation remains fragile and subject to potential headwinds that could severely impact demand, supply chain reliability and future growth prospects.' The data showed that UK manufacturing production contracted for the eighth consecutive month as the companies referenced weak market conditions. New orders were also lower for the month, although this drop was the smallest over the past nine months. Firms reported that new export business dropped for the 41st month in a row in the face of 'reduced demand from the US, Europe and China'. Mike Thornton, head of industrials at RSM UK, said: 'The manufacturing PMI increased for the second consecutive month in June, showing signs of improvement across the board. 'The new orders index saw the most notable monthly uptick, rising to the highest level since October 2024, which is contributing to growing industry optimism, a trend that's likely to continue following this week's trade deal between the US and UK coming into force.' Sign in to access your portfolio
The Independent
2 days ago
- Business
- The Independent
UK manufacturing downturn eases in June despite continued weak demand
The downturn in UK factory production eased further as the sector delivered its strongest performance for five months, according to new figures. However, firms still cited weak demand amid uncertainty over Government policy, tariffs and the wider global economy. The S&P Global UK manufacturing PMI survey, watched closely by economists, showed a reading of 47.7 in June, up from 46.4 in May. Any reading above 50 indicates that activity is growing while any score below means it is contracting. This was in line with predictions by economists. The survey pointed to a steadying situation for businesses, who said they were also increasingly optimistic. Rob Dobson, director at S&P Global Market Intelligence, said: 'Although the downturn in UK manufacturing continued in June, the latest PMI survey provides signs of conditions stabilising. 'Production, new orders and employment all fell at slower rates, while business optimism picked up to a four-month high. 'That said, any hoped-for stabilisation remains fragile and subject to potential headwinds that could severely impact demand, supply chain reliability and future growth prospects.' The data showed that UK manufacturing production contracted for the eighth consecutive month as the companies referenced weak market conditions. New orders were also lower for the month, although this drop was the smallest over the past nine months. Firms reported that new export business dropped for the 41st month in a row in the face of 'reduced demand from the US, Europe and China'. Mike Thornton, head of industrials at RSM UK, said: 'The manufacturing PMI increased for the second consecutive month in June, showing signs of improvement across the board. 'The new orders index saw the most notable monthly uptick, rising to the highest level since October 2024, which is contributing to growing industry optimism, a trend that's likely to continue following this week's trade deal between the US and UK coming into force.'
Reuters
2 days ago
- Business
- Reuters
Russia's factory activity in June contracts at fastest pace since March 2022
July 1 (Reuters) - Russia's manufacturing sector contracted at its sharpest rate in more than three years in June as output, new orders and employment all slumped, a business survey showed on Tuesday. The S&P Global Purchasing Managers' Index (PMI) for Russia's manufacturing sector fell to 47.5 last month from 50.2 in May, sliding back below the 50 mark denoting contraction after just one month of growth. It was the steepest monthly contraction since March 2022, the month after Moscow invaded Ukraine and the West imposed unprecedented sanctions on it. Output decreased for the fourth month running and new orders slumped into contraction territory from growth in May. "The fall in new work was attributed by firms to reduced purchasing power at customers and weak client demand," S&P Global said in a statement. Russia's significant spending on military equipment and weapons since invading Ukraine in February 2022 has buoyed a manufacturing sector that otherwise may have suffered as some countries shunned Moscow. Industrial output growth has started slowing in the past year, federal data shows. The contraction in new export orders quickened in June to its fastest pace since November 2022. "Unfavourable exchange rates reportedly weighed on competitiveness in key export markets, according to panellists," S&P Global said. Employment levels fell for the second time in three months, as manufacturers entered retrenchment mode. The pace of job shedding was the sharpest since April 2022, reflecting reduced production requirements. Despite subdued demand conditions, business confidence remained historically upbeat, buoyed by hopes of improved demand and planned product releases, the survey showed. However, optimism dropped to the lowest level since October 2022 amid concerns over global economic uncertainty.
