Global Services Turning Weaker, Pointing To Slower Economic Growth In The 2H
The global Purchasing Manager Index (PMI) for services sector, based on a survey conducted by JP Morgan and Markit Economics in London, fell to 53.5 in August, from 54.3 in July and a high of 56.3 in April. This was the fourth straight
month of easing and the slowest pace of increase in six months, indicating that global services activities are trending lower, in line with a slowdown in global trade activities and consumer spending. The weakness was reflected in a
slowdown in new business activities and a sharper contraction in backlogs of work during the month. Indeed, new business activities fell to the slowest pace in eight months in August. As a result, businesses turned cautious and started
to retrench workers in August, the first in five months. Input costs, on the other hand, rebounded during the month,pointing to a pick-up in price pressure, which is likely to be temporary.
Tracking The World Economy... - 06/09/2010
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