Growth of global services output improves in October
Staff Writer |
The start of the fourth quarter saw a further solid expansion of global service sector output.
Article continues below
At 54.1, up from 53.8 in September, 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 – posted its joint-highest reading during the past two-and-a-half years.
Rates of output growth accelerated across the business, consumer and financial services sectors.
The steepest increase was signalled by financial service providers and the weakest by consumer services firms.
National PMI data also pointed to a broad-based increase in business activity.
Among the countries covered, only Brazil failed to register an expansion.
Eurozone nations continued to fare comparatively well, despite seeing growth ease (on average) over the month.
Within the currency union, France saw a stronger pace of service sector expansion (seven-month high) whereas growth slowed in Germany, Italy, Spain and Ireland.
Service sector output in the UK rose at the quickest pace in six months, while growth steadied at a robust level in the US.
Rates of expansion accelerated in China, Japan and India, but remained below the global average in all three cases.
October saw a solid increase in global service sector new business, although the rate of growth slipped to a sixmonth low.
The upturn was nevertheless still sufficient to test capacity, as backlogs of work rose for the fifteenth consecutive month.
Job creation was recorded again in October, with the pace of increase staying among the best registered over the past two-and-a-half years.
Employment rose in almost all of the nations covered by the survey, the sole exception being Brazil.
Price inflation eased slightly during October.
Average costs rose at the slowest pace in three months, reflected in an weakening of output charge inflation to a six-month low.
Rates of increase in both price measures were slightly stronger (on average) in developed nations compared to emerging markets. ■