Global service sector shows renewed vigour in April
Staff Writer |
Business activity in the global service sector increased at a slightly faster pace in April.
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At 53.8, the J.P.Morgan Global Services Business Activity Index – a composite index produced by J.P.Morgan and IHS Markit in association with ISM and IFPSM – rose from March’s 17- month low of 53.2, but failed to recoup fully the momentum lost since February’s recent high.
The index has signalled growth in each of the past 105 months.
Please note that, due to a later-than-usual release date, PMI data for Russian services were not available for inclusion in the April 2018 global PMI numbers.
Sector and national PMI data continued to point to a broad-based expansion.
Output rose across the business, consumer and financial services categories, with rates of increase also improving in the first two.
Business activity rose in almost all of the nations covered by the survey, the exception being stagnation in Brazil.
Rates of growth strengthened to two-month highs in the US, China and the UK, to a six-month high in Japan and the quickest in three months in India.
The upturns in the euro area and Australia remained solid, and faster than the global average, despite easing to eight- and twomonth lows respectively.
The outlook for the global service sector remained positive in April.
Inflows of new business rose at the sharpest pace in over three-and-a-half years, leading to a further modest increase in backlogs of work.
Business confidence about the coming 12 months similarly improved to its highest since June 2014.
Companies in the business, consumer and financial services sectors also registered an improved degree of optimism during the latest survey month.
Solid current and expected future growth of output and new business encouraged firms to take on additional staff in April.
Jobs growth hit a 46-month high, with employment rising at faster rates in the euro area, China, India and Australia.
The pace of increase was unchanged in the US, but slowed in Japan and the UK.
Job losses continued to be registered in Brazil.
Price inflation steadied in April, as input costs and output charges rose at the same rates as in the prior survey month.
Increases in both price measures remained sharper (on average) in developed nations compared to their emerging market counterparts. ■