Latest news with #economiccontraction
Yahoo
03-07-2025
- Business
- Yahoo
Russian services sector contracts for first time in a year in June
(Reuters) -Russia's services sector slumped into a contraction in June for the first time in a year, as slower growth in new orders led companies to cut output, a business survey showed on Thursday. The S&P Global Purchasing Managers' Index (PMI) for Russia's services sector fell to 49.2 last month from 52.2 in May, moving below the 50 mark that separates expansion and contraction for the first time since June 2024. "The fall in output was linked to a less marked upturn in new orders and more subdued client demand," S&P Global said. "The rate of decline was only slight, but it nevertheless compared unfavourably with the solid pace of growth seen on average over the series history." Firms linked higher operating expenses to increased supplier prices and wage bills, the survey showed. Employment in the sector contracted for the third time in four months, with companies often not replacing voluntary leavers. New export business, which had contracted for a year after Moscow invaded Ukraine in February 2022, expanded for the eighth successive month in June, the survey showed, with panellists reporting stronger demand in existing markets. Business confidence dipped to its lowest since July 2023, as firms expressed concerns over headwinds to the sales environment despite hopes for new client wins and greater customer referrals. A sister survey published on Tuesday showed that Russia's manufacturing sector contracted at its sharpest rate in more than three years in June as output, new orders and employment all slumped. 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
Reuters
01-07-2025
- 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.
Argaam
26-06-2025
- Business
- Argaam
US economy contracts 0.5% in Q1 2025
The US economy contracted in the third estimate for the first quarter of the year, weighed down by rising imports and lower government spending. Official data released on Thursday showed that US real gross domestic product (GDP) shrank at an annualized rate of 0.5% in Q1 2025, compared to a 0.2% contraction in the second estimate. The downward revision reflected weaker consumer spending and exports, despite a cut in import estimates. According to the Bureau of Economic Analysis, the GDP contraction was driven by a slowdown in consumer spending and a decline in government expenditures, partially offset by an increase in investment. The agency also revised up its estimate for the personal consumption expenditures (PCE) price index to 3.7%, from 3.6% in the first and second readings. The core PCE index, which excludes food and energy, was also revised higher to 3.5%, from 3.4% in the previous estimate.
Yahoo
23-06-2025
- Business
- Yahoo
French private sector activity contracts further in June, PMI shows
PARIS (Reuters) -French private sector activity contracted further in June, as weakness in both the manufacturing and services sectors hit the euro zone's second-biggest economy, S&P Global said on Monday. The flash PMI for France's dominant services sector for June stood at 48.7 points, down from 48.9 points in May. A Reuters poll had forecast 49.2 points for the June flash services PMI. Any figure below 50 points shows a contraction in activity, while above 50 shows an expansion. The June flash manufacturing PMI came in at 47.8 points, down from 49.8 in May and below a Reuters poll which had forecast 50.0 points. The June flash composite PMI - which comprises both the services and manufacturing sectors - stood at 48.5 points, down from 49.3 in May and also below a Reuters poll which forecast 49.3 points. The manufacturing sector was impacted by excess stocks among clients, challenging market conditions, and order postponements. New orders fell for the thirteenth consecutive month, with factory orders experiencing the fastest decline since February. Geopolitical tensions, such as uncertainty over tariffs and the war between Israel and Iran, also hit business activity. "The outlook is certainly clouded, as domestic demand for goods has weakened, as indicated by the decline in new orders," said Hamburg Commercial Bank junior economist Jonas Feldhusen. "While the ECB's interest rate cuts, deregulation efforts at the EU level, and planned defence investments are likely to continue providing support to the manufacturing sector, uncertainties surrounding global trade and geopolitics – now further exacerbated by escalations in the Middle East – as well as global competition, are dampening the outlook," he added. 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
Bloomberg
16-06-2025
- Business
- Bloomberg
New York Factory Activity Contracts While Outlook Improves
New York state factory activity shrank in June by more than projected as orders and shipments contracted, though expectations improved. The Federal Reserve Bank of New York's general business conditions index declined nearly 7 points to minus 16, marking a fourth straight month of contraction, data showed Monday. Readings below zero indicate contraction. The median forecast in a Bloomberg survey of economists called for a reading of minus 6.
