| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Global Economy Last Updated: Jun 7, 2011 - 9:02 AM


Global service sector growth accelerated slightly in May
By Finfacts Team
Jun 6, 2011 - 11:19 AM

Email this article
 Printer friendly page
Source: Markit

The JPMorgan Global Services Business Activity Index rose slightly to 52.5 in May, up from the 21-month low of 51.0 in April.

The rate of expansion was still only modest and below the average for the ongoing recovery that began in August 2009. The acceleration during May was mainly the result of stronger growth in China and a marked easing in the rate of contraction in Japan following the earthquake-affected readings of March and April. Japan saw a further marked decrease in business activity nonetheless and was the only nation covered by the survey to report a decline.

Conditions elsewhere generally eased in May, with slower growth seen in the US (16-month low), the Eurozone (weakest since January), the UK (three-month low) and India (least marked since September 2009). Within the euro area the recovery stayed uneven by nation, with substantial growth in France and Germany contrasting with the subdued performances of Italy, Spain and Ireland. Russia saw a slightly faster increase in business activity.

Inflows of new business strengthened in May. However, similar to activity, the extent of the pick-up was only sufficient to recoup part of the momentum lost during the previous month. Incoming new work has now risen for twenty-two successive months.

The US, China, Russia, Brazil and Hong Kong all saw new business rise at a faster pace in May. Growth slowed in the Eurozone, the UK and India, whereas Japan, Italy, Spain and Ireland all reported reduced volumes of new work. Although Japan saw the steepest contraction overall, the rate of decline eased sharply from that signalled in April.

May saw service sector employment increase for the eleventh consecutive month. The pace of job creation improved to a three month high and was above the average for the current sequence of growth. The strongest rises were signalled in Russia, followed by Germany and then the US, with rates of increase accelerating in each case. China, India and Brazil also saw faster jobs growth, while employment rose slightly in the UK following April's decline.

Japan, Spain and Ireland were the only nations covered by the survey to see job losses in May.

Average input prices rose for the twenty-second successive month in May. Despite easing to a five-month low, the rate of increase remained marked and above the average for this period.

The steepest cost inflation was seen in Hong Kong, the US, Russia and the UK.

Commenting on the survey, David Hensley, Director of Global Economics Coordination at JPMorgan, said: "Growth of the global service sector acclerated in May, mainly reflecting a modest bounceback from the sharp slowdown seen in the previous month. The underlying trend remains one of slower growth than at the start of the year. Job creation was sustained for the eleventh month running, but cost inflation failed to show as substantial an easing as that seen at manufacturers."

The Global Report on Services is based on the results of surveys covering around 3,500 executives carried out in the USA by ISM, and in Japan, China, the UK, Germany, France, Spain, Italy, Brazil, India, Russia, Ireland and Hong Kong by Markit, in Australia by AiG, New Zealand by Business NZ and Mexico by HSBC. These countries together account for an estimated 80% of global service sector output.

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

Global Economy
Latest Headlines
Top 10 of world’s 250 largest consumer products companies account for 30% of sales
Nine of world's 20 fastest growing economies in Africa
Globalisation maybe stalling as trade growth remains weak
Global growth prospects uneven across major economies says IMF
Emerging markets growth lowest since 2009; Global growth at 30-year average
China's economic rebalancing hitting Latin American economies
New York, London, HK & Singapore top global financial centres index; Dublin recovers
Global growth in modest expansion from low oil prices/ monetary easing says OECD
Composite leading indicators point to positive change in growth momentum in the Eurozone
Global labour market trends portend paradise for some but uncertainty for many workers
Vienna remains top of World Quality of Living Rankings in 2015; Dublin at 34
Zurich and Geneva overtake Singapore to become world's most expensive cities
HSBC Switzerland and Falciani: How it happened
Global economic power to continue shift from advanced economies
Global food price index falls in January; Cereal output set for record
Global debt has risen $57tn or 17% of world GDP since 2007
Tokyo with 36m people safest of 50 world cities; Stockholm safest in Europe
China overtook US in 2014 inward investment; Ireland slips on dodgy tax data
Global fund managers turn to US equities, bonds and real estate
Is World Economic Forum in Davos really serious about tackling inequalities?
IMF cuts global growth in 2015 despite cheaper oil, faster US growth
Quick guide to what’s happened to the Swiss franc
IMF's Lagarde warns of ‘lopsided’ global growth despite cheap oil
Global growth at risk of long-term slowdown says study
Private consumption main driver of OECD GDP growth in Q3 2014
Swiss financial centre reforms work in progress as banking secrecy collapses
Fragile global economic recovery faces major risks says World Bank
Global food prices fell in 2014 for third straight year; Meat rose to record high
Commodities Supercycle: Real food prices in 1980 - 2000 were as low as 1930s - Part 2
Commodities price supercycle ends after century of price falls - Part 1
Growth rate of global manufacturing slowed at end of 2014
Global GDP boost from low oil prices in 2015 at 0.1%
Argentina, China head 2014 share price index rises; Denmark best of developed countries
Economic recovery, stagnation, miserablism and miserableness
Russia sells reserves to support rouble
Switzerland bows to pressure; Tightens money-laundering rules
Opium poppy cultivation in Southeast Asia's 'Golden Triangle' hits new high in 2014
Oil prices over 40% below June highs
Global manufacturing expanded at slowest pace for 14 months in November
OECD says Eurozone risks stagnation if policy response too week