The US composite PMI index, which tracks manufacturing and service sectors, fell to 50.4 in August from 52 in July. That's the biggest drop since November 2022. When looked at individually, the manufacturing & services sector data was even more worrying business activity in the services sector was at 51.0 in August. That's the lowest since February this year. The manufacturing index fell deeper into contraction territory at 47, that's down from 49 in July and marked the fourth straight month of contraction.

Manufacturing and services sector activity falls in August

India's services sector exhibited remarkable resilience in May, even as the pace of growth slightly eased from the previous month.

According to the monthly survey conducted by S&amp;P Global, the sector recorded the second-strongest rate of expansion in nearly 13 years, bolstered by favorable demand conditions and new client acquisitions. While the seasonally adjusted S&amp;P Global India Services PMI Business Activity Index fell from 62 in April to 61.2 in May, the output still grew at the second-quickest pace since July 2010.

The survey's findings underscored the positive trend of job creation within India's dynamic service sector. For the 22nd consecutive month, the headline figure remained above the crucial threshold of 50, indicating continuous service sector expansion. This growth was further strengthened&nbsp;by companies increasing their workforce to accommodate higher workloads and capitalize on new opportunities.&nbsp;

"The PMI data for May stand as a compelling testament to prevailing demand resilience, impressive output growth and job creation within India's dynamic service sector,"&nbsp;Pollyanna De Lima, Economics Associate Director at S&amp;P Global Market Intelligence, said

Meanwhile, the S&amp;P Global India Composite PMI Output Index held steady at 61.6 in May. The index, which combines services and manufacturing output, indicated&nbsp;that India's private sector posted&nbsp;a rate of expansion in business activity that was the joint-best in just under 13 years.

Optimistic Outlook and Factors Affecting Growth

Service companies maintain an optimistic view and anticipate increased business activity over the next 12 months. The upbeat forecasts are attributed to various factors, including robust advertising, strong demand, and favorable market conditions. These elements contribute to the sector's overall positive sentiment and bolster confidence in sustained growth.

Indian service providers faced challenges in May as they grappled with higher food, input, transportation, and wage costs. To mitigate these challenges, companies adjusted their pricing, leading to increased service charges. While this could potentially impact purchasing power and the affordability of services, organizations are actively seeking operational efficiencies and exploring alternative sourcing options to navigate these obstacles.

India's services sector exhibited remarkable resilience in May, even as the pace of growth slightly eased from the previous month. According to the monthly survey conducted by S&P Global, the sector recorded the second-strongest rate of expansion in nearly 13 years, bolstered by favorable demand conditions and new client acquisitions.

India's services sector exhibited remarkable resilience in May, even as the pace of growth slightly eased from the previous month. According to the monthly survey conducted by S&P Global, the sector recorded the second-strongest rate of expansion in nearly 13 years, bolstered by favorable demand conditions and new client acquisitions. While the seasonally adjusted S&P Global India Services PMI Business Activity Index fell from 62 in April to 61.2 in May, the output still grew at the second-quickest pace since July 2010. The survey's findings underscored the positive trend of job creation within India's dynamic service sector. For the 22nd consecutive month, the headline figure remained above the crucial threshold of 50, indicating continuous service sector expansion. This growth was further strengthened by companies increasing their workforce to accommodate higher workloads and capitalize on new opportunities. "The PMI data for May stand as a compelling testament to prevailing demand resilience, impressive output growth and job creation within India's dynamic service sector," Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said Meanwhile, the S&P Global India Composite PMI Output Index held steady at 61.6 in May. The index, which combines services and manufacturing output, indicated that India's private sector posted a rate of expansion in business activity that was the joint-best in just under 13 years. Optimistic Outlook and Factors Affecting Growth Service companies maintain an optimistic view and anticipate increased business activity over the next 12 months. The upbeat forecasts are attributed to various factors, including robust advertising, strong demand, and favorable market conditions. These elements contribute to the sector's overall positive sentiment and bolster confidence in sustained growth. Indian service providers faced challenges in May as they grappled with higher food, input, transportation, and wage costs. To mitigate these challenges, companies adjusted their pricing, leading to increased service charges. While this could potentially impact purchasing power and the affordability of services, organizations are actively seeking operational efficiencies and exploring alternative sourcing options to navigate these obstacles.

India’s services sector displays resilient growth despite May slowdown

Britain's vital services sector shrank in March for the first time in almost three years, with activity slammed by Brexit turmoil and flat economic growth, a key survey showed Wednesday.

The purchasing managers' index (PMI) for services fell from 51.3 in February to 48.9 in March, according to IHS Markit, which compiles the data.

That was the lowest level since July 2016, which was one month after Britons voted in favour of leaving the European Union.

The figure below 50 in the index indicates that the service sector, which accounts for some 80 per cent of British gross domestic product, is in contraction.

"A drop in service sector activity indicates that UK GDP contracted in March, with the economy stalling over the first quarter as a whole and at risk of sliding into a deepening downturn in coming months," said Chris Williamson, a chief business economist at IHS Markit.

The sector is widely regarded as the engine of the British economy -- and any weakness can, therefore, slam the brakes on growth.&nbsp;

Britain's economy had already struggled in the fourth quarter of last year, with anaemic economic growth of just 0.2 per cent.

"Both the services and construction sectors are now in decline and manufacturing is only expanding because of emergency stockpiling ahead of Brexit," said Williamson.

He added that the underlying picture of demand is even worse than the headline numbers suggest.

"Service sector order books have contracted at the steepest rate since the height of the global financial crisis in 2009 so far this year, with companies reporting that Brexit uncertainty has dampened demand and led to cancelled or deferred spending, exacerbating a headwind from slower global economic growth," he said.

The March 2019 reading shocked economists because market expectations had been for a drop in the index -- which is regarded as a crucial barometer of UK business activity -- to 50.9.

"The latest UK services PMI makes it clear that the economy is being hit hard by all the uncertainty in surrounding Brexit," noted ING economist James Smith.

He added: "Of course, it's important to remember that PMIs don't always precisely reflect the extent of a slowdown, merely that an increasing number of firms are reporting worsening conditions.

"That said, this latest reading implies that the first quarter as a whole could see near-stagnant growth." 
&nbsp;

Britain's vital services sector shrank in March for the first time in almost three years, with activity slammed by Brexit turmoil and flat economic growth, a key survey showed Wednesday.

Britain's vital services sector shrank in March for the first time in almost three years, with activity slammed by Brexit turmoil and flat economic growth, a key survey showed Wednesday. The purchasing managers' index (PMI) for services fell from 51.3 in February to 48.9 in March, according to IHS Markit, which compiles the data. That was the lowest level since July 2016, which was one month after Britons voted in favour of leaving the European Union. The figure below 50 in the index indicates that the service sector, which accounts for some 80 per cent of British gross domestic product, is in contraction. "A drop in service sector activity indicates that UK GDP contracted in March, with the economy stalling over the first quarter as a whole and at risk of sliding into a deepening downturn in coming months," said Chris Williamson, a chief business economist at IHS Markit. The sector is widely regarded as the engine of the British economy -- and any weakness can, therefore, slam the brakes on growth. Britain's economy had already struggled in the fourth quarter of last year, with anaemic economic growth of just 0.2 per cent. "Both the services and construction sectors are now in decline and manufacturing is only expanding because of emergency stockpiling ahead of Brexit," said Williamson. He added that the underlying picture of demand is even worse than the headline numbers suggest. "Service sector order books have contracted at the steepest rate since the height of the global financial crisis in 2009 so far this year, with companies reporting that Brexit uncertainty has dampened demand and led to cancelled or deferred spending, exacerbating a headwind from slower global economic growth," he said. The March 2019 reading shocked economists because market expectations had been for a drop in the index -- which is regarded as a crucial barometer of UK business activity -- to 50.9. "The latest UK services PMI makes it clear that the economy is being hit hard by all the uncertainty in surrounding Brexit," noted ING economist James Smith. He added: "Of course, it's important to remember that PMIs don't always precisely reflect the extent of a slowdown, merely that an increasing number of firms are reporting worsening conditions. "That said, this latest reading implies that the first quarter as a whole could see near-stagnant growth."

UK's service sector shrinks for first time since July 2016: Data

British business activity sank in July to its lowest level since April 2009, a survey revealed today in the first indication of economic contaction since the shock European Union (EU) exit vote. 
 
The preliminary composite purchasing managers&#39; index (PMI) by the research Markit group sank to 47.7 points in July, down from 52.4 in June. 
 
A reading under 50 indicates contraction in private sector activity. 
 
The survey -- regarded as a key early indicator of economic activity before official statistics are published -- is the first major evidence of economic fallout after Britons voted to leave the EU in a referendum on June 23. 
 
&quot;July saw a dramatic deterioration in the economy, with business activity slumping at the fastest rate since the height of the global financial crisis in early-2009,&quot; said Chris Williamson, chief economist at Markit. 
 
&quot;The downturn, whether manifesting itself in order book cancellations, a lack of new orders or the postponement or halting of projects, was most commonly attributed in one way or another to Brexit,&quot; he added.&nbsp; 
 
Third quarter opens on weak footing in Britain&nbsp; 
 
Markit added that the survey signalled a 0.4-per cent contraction in the British economy in the third quarter, or three months to September. 
 
&quot;Much of course depends on whether we see a further deterioration in August or if July represents a shock-induced nadir,&quot; added Williamson. 
 
&quot;Given the record slump in service sector business expectations, the suggestion is that there is further pain to come in the short-term at least.&quot; 
 
Markit added the survey showed that the economy had &quot;opened the third quarter on a weak footing&quot;. 
 
Output and new orders fell in both the manufacturing and service sectors during July. 
 
&quot;A number of firms linked this to ongoing uncertainty pre- and post-EU referendum, with reports especially prevalent among service providers,&quot; added Markit in a statement. 
 
&quot;The downturn in services was also more marked than that seen in manufacturing. Services activity and new orders both fell at the quickest rates in over seven years.&quot; 
 
The collapse in the British pound following the Brexit vote had meanwhile pushed up manufacturers&#39; costs. 
 
&quot;The downside of the exchange rate was a steep rise in manufacturers` input prices, mainly due to higher import costs,&quot; it said. 
 
&quot;The rate of purchase price inflation hit a five-year record, with the extent of the acceleration among the steepest in the survey history.&quot; 
 
The data was published after the International Monetary Fund slashed its global and British economic growth forecasts for 2016 and 2017 earlier this week -- and blamed uncertainty created by Brexit. Britain`s new finance minister Philip Hammond meanwhile declared this week that it was up to the Bank of England (BoE) to respond to the economic &quot;shock&quot; arising from Brexit. 
 
&#39;PMI data could persuade policymakers to act&#39;&nbsp; 
 
Williamson added today that the new PMI data could persuade policymakers to act. 
 
&quot;With policymakers waiting to see hard data on the state of the economy before considering more stimulus, the slump in the PMI will provide a powerful argument for swift action,&quot; noted Williamson. 
 
The BoE kept its key interest rate at 0.50 percent last week, confounding expectations for a reduction -- but flagged a possible August cut in response to Brexit. 
 
Policymakers also signalled that the exact size and nature of any stimulatory measures would be determined at next month`s monetary policy gathering, due on August 4. 
 
The impact of Brexit on the eurozone was much more muted, however, with Markit&#39;s preliminary composite PMI for the 19 nations that share the euro dipping to 52.9 points, which was however an 18-month low. 
 
Williamson said the eurozone economy &quot;showed surprising resilience in the face of the UK&#39;s vote to leave the EU and another terrorist attack in France.&quot; 
 
(AFP)&nbsp;

The survey is the first major evidence of economic fallout after Britons voted to leave the EU

British business activity sank in July to its lowest level since April 2009, a survey revealed today in the first indication of economic contaction since the shock European Union (EU) exit vote. The preliminary composite purchasing managers' index (PMI) by the research Markit group sank to 47.7 points in July, down from 52.4 in June. A reading under 50 indicates contraction in private sector activity. The survey -- regarded as a key early indicator of economic activity before official statistics are published -- is the first major evidence of economic fallout after Britons voted to leave the EU in a referendum on June 23. "July saw a dramatic deterioration in the economy, with business activity slumping at the fastest rate since the height of the global financial crisis in early-2009," said Chris Williamson, chief economist at Markit. "The downturn, whether manifesting itself in order book cancellations, a lack of new orders or the postponement or halting of projects, was most commonly attributed in one way or another to Brexit," he added. Third quarter opens on weak footing in Britain Markit added that the survey signalled a 0.4-per cent contraction in the British economy in the third quarter, or three months to September. "Much of course depends on whether we see a further deterioration in August or if July represents a shock-induced nadir," added Williamson. "Given the record slump in service sector business expectations, the suggestion is that there is further pain to come in the short-term at least." Markit added the survey showed that the economy had "opened the third quarter on a weak footing". Output and new orders fell in both the manufacturing and service sectors during July. "A number of firms linked this to ongoing uncertainty pre- and post-EU referendum, with reports especially prevalent among service providers," added Markit in a statement. "The downturn in services was also more marked than that seen in manufacturing. Services activity and new orders both fell at the quickest rates in over seven years." The collapse in the British pound following the Brexit vote had meanwhile pushed up manufacturers' costs. "The downside of the exchange rate was a steep rise in manufacturers` input prices, mainly due to higher import costs," it said. "The rate of purchase price inflation hit a five-year record, with the extent of the acceleration among the steepest in the survey history." The data was published after the International Monetary Fund slashed its global and British economic growth forecasts for 2016 and 2017 earlier this week -- and blamed uncertainty created by Brexit. Britain`s new finance minister Philip Hammond meanwhile declared this week that it was up to the Bank of England (BoE) to respond to the economic "shock" arising from Brexit. 'PMI data could persuade policymakers to act' Williamson added today that the new PMI data could persuade policymakers to act. "With policymakers waiting to see hard data on the state of the economy before considering more stimulus, the slump in the PMI will provide a powerful argument for swift action," noted Williamson. The BoE kept its key interest rate at 0.50 percent last week, confounding expectations for a reduction -- but flagged a possible August cut in response to Brexit. Policymakers also signalled that the exact size and nature of any stimulatory measures would be determined at next month`s monetary policy gathering, due on August 4. The impact of Brexit on the eurozone was much more muted, however, with Markit's preliminary composite PMI for the 19 nations that share the euro dipping to 52.9 points, which was however an 18-month low. Williamson said the eurozone economy "showed surprising resilience in the face of the UK's vote to leave the EU and another terrorist attack in France." (AFP)

British business activity sinks after EU divorce, eurozone economy shows resilience: Key survey

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