Global services business activity growth slows in August
Staff Writer |
The rate of expansion of global service sector activity eased to a five-month low in August.
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The slowdown was broad-based, with weaker increases in output recorded across the business, consumer and financial services categories.
Price inflationary pressures remained elevated.
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 – slipped to 53.5 in August, down from 54.0 in July, to post below its long-run average (54.2) for the second straight month.
The headline index has signalled expansion in each of the past 109 months.
Output expanded in almost all of the national service economies for which August data were available.
The sole exception was Brazil, where activity contracted at the sharpest pace in one-and-a-half years.
Developed nations, on average, registered a faster rate of expansion than their emerging market counterparts.
Output growth improved mildly in the euro area, as faster expansions in Germany, France, Spain and Ireland more than offset a weaker increase in Italy.
Japan and the UK also saw stronger rises in activity.
Growth remained solid in the US, despite slowing to a four-month low.
Rates of expansion eased in China (ten-month low) and India (weakest in the current three-month sequence of increase).
Output growth in Russia accelerated to its highest since May.
The level of new business in the global service sector continued to rise at a robust pace in August.
Although the rate of growth eased to a 16-month low, it exerted pressure on capacity, as signalled by a rise in outstanding business.
Companies responded by raising employment, with the pace of job creation matching that seen in July.
Staffing levels were increased in the US, the euro area, China, Japan, the UK, India and Australia.
Job losses were seen in Brazil and Russia.
August saw output charges rise at a pace close to July’s survey-record.