Global services output growth eases to 28-month low in January
Staff Writer |
The start of 2019 saw a further slowing in the rate of expansion of global service sector output.rn
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e 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 – fell to a 28-month low of 52.6 in January, down from 53.0 in December.
The consumer services sector was the main drag on the global aggregate, as business activity contracted for the first time since August 2016.
There was also a marked slowdown in the rate of output growth at financial services providers to a four-year low.
The business services sector was the brightest spot, being the only sub-industry covered to register a faster pace of expansion.
January saw output growth ease (on average) in both developed and emerging nations, slipping to 28- and three-month lows respectively.
Service sector activity increased in all except two (France and Italy) nations.
The US remained one of the strongest performers, despite seeing its rate of expansion slow slightly.
China also saw a solid (albeit slower) increase in output.
Rates of expansion were below the global average in the euro area, Japan, the UK, Australia, India and Brazil.
January saw global service sector new business rise to the weakest extent since September 2016.
There was also a slight decrease in new export orders.
Slower upturns in output and new work were reflected in the labour market, with the rate of job creation slipping to a 21-month low.
Employment rose in the US, the euro area, China, Japan, India, Australia and Russia.
In contrast, cuts were seen in the UK, Brazil and Italy.
Service providers maintained a positive outlook for the year ahead at the start of 2019, with business optimism improving to a three-month high.
The news of the price front was mixed, with January seeing an acceleration of output charge inflation and a slower rate of increase in average costs. ■