Latest news with #servicessector
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.
Yahoo
12-06-2025
- Business
- Yahoo
UK economy shrinks by 0.3% in April
The UK economy shrank by more than expected in April, contracting 0.3%, according to official figures. Economists had expected the UK's gross domestic product (GDP) — the standard measure of an economy's value — to shrink by 0.1%. The fall followed growth of 0.2% in March. The Office for National Statistics (ONS) said that GDP was estimated to have grown by 0.7% in the three months to April, compared to the three months to January, which was largely driven by growth in the services sector. Liz McKeown, director of economic statistics at the ONS, said: "The UK economy contracted in April, with services and manufacturing both falling. However, over the last three months as a whole, GDP still grew, with signs that some activity may have been brought forward from April to earlier in the year." Read more: Why Rachel Reeves' spending review may lead to tax rises "Both legal and real estate firms fared badly in April, following a sharp increase in house sales in March when buyers rushed to complete purchases ahead of changes to stamp duty," she said. "Car manufacturing also performed poorly after growing in the first quarter of the year. "In contrast April was a strong month for construction, research and development and retail, with increases in these only partially offsetting falls elsewhere." In response to the latest data, chancellor Rachel Reeves said: "Our number one mission is delivering growth to put more money in people's pockets through our Plan for Change, and while these numbers are clearly disappointing, I'm determined to deliver on that mission. "In yesterday's spending review we set out how we'll deliver jobs and growth — whether that's improving city region transport, a record investment in affordable homes or funding Sizewell C nuclear power station. We're investing in Britain's renewal to make working people better off." Reeves delivered the UK spending review on Wednesday, sharing details of governmental budget plans for the next few years. Key announcements included a £29bn per year increase in funding for the NHS, while the government's defence budget is set to increase from 2.3% to 2.6% of the country's gross domestic product (GDP) from 2027. Reeves also shared details of a £39bn boost to funding for affordable housing and £15.6bn for transport projects in England's largest city regions outside of London. Read more: Why Rachel Reeves' spending review may lead to tax rises The UK's rental boom is over What you need to know about UK's private stock market PiscesError 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
