| 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


© Copyright 2011 by Finfacts.com

Top of Page

Global Economy
Latest Headlines
The changing face of global banana trade
Investor confidence in global economic growth remains high
IMF Fiscal Monitor: Public debt ratios in advanced countries stabilise
IMF says recovery is becoming broader; Warns of low inflation in Eurozone
Emerging market output growth slows to marginal pace in March
Russia’s credit rating outlook cut; MICEX share index falls
US and UK residents hold 74% of private shares of Russian gas giant Gazprom
Emerging market growth slows further in 2014
Global manufacturing PMI hits 34-month high in February 2014
Swiss battle to avoid another UBS tax debacle
Russia would be vulnerable to tough economic sanctions
Switzerland to back OECD tax treaty
OECD: Faster job creation unlikely to return employment rates to pre-crisis levels
Alpine tax haven fears for its survival
Vienna world’s best city for expatriates; Dublin at 34 in list of 223 cities
Fund managers fear China hard landing; Optimism towards Europe at new highs
OECD says outlook for most advanced economies is improving
Capex spending by global companies forecast to fall in 2014
Growth engines struggle in emerging economies
Economic convergence is a myth in Europe and in emerging economies
Investors start 2014 more optimistic about global growth prospects
Davos 2014: Richest 85 people worth as much as 3.5bn poorest; Few poor countries by 2035
IMF projects global growth at 3.7% in 2014, rising to 3.9% in 2015
Davos 2014: World Economic Forum to cost $40,000 average per attendee
Stockbuilding main driver of OECD GDP growth in the third quarter of 2013
World Bank warns West's central banks not to imperil emerging market capital flows
Worldwide productivity growth weakened for the third straight year in 2013
Growth set to improve in most large economies in first half of 2014
In a crowded market, Swiss cheesemakers return to basics
Half world’s countries could depend on resource sector for growth in 20 years
Sub-Saharan Africa remains second-fastest-growing region in the world
Emerging markets growth slowed at the end of 2013
Global shares rose 20% in 2013; Nikkei best in 41 years, Dow in 18
Commodity prices down in 2013; Gold plunges; US dollar and euro rise
Corporate tax reform and the biggest tech tax havens
Tax: OECD seeks inspiration from FATCA model
IEA raises forecast for 2013 and 2014 global oil demand
Composite leading indicators suggest improving economic outlook in major economies
First global trade deal in decades to reduce trading costs
Emerging market growth strengthens in November