Thursday, August 5, 2010

Tracking The World Economy... - 05/08/2010

Global Services Slowing Down, Pointing To A More Moderate 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 54.3 in July, from 54.9 in June and a high of 56.8 in April. This was the third straight month of easing and the lowest level in five months, indicating that global services activities have weakened, on the back of a slowdown in trade activities and consumer spending. The weakness was reflected in a slowdown in backlogs of work during the month. This was, however, mitigated by a pick-up in new business activities, suggesting that the underlying economic activities, though easing, are likely to remain resilient in the months ahead. As a result, businesses recruited more workers in July, after a brief slowdown in June. This was the third straight month the sector recorded an increase in employment, after services providers starting to recruit workers for the first time in more than two years in May, suggesting that they are becoming more confidence. Input costs, on the other hand, continued to ease during the month, pointing to easing price pressures.

Tracking The World Economy... - 05/08/2010

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