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Irish Examiner
05-06-2025
- Business
- Irish Examiner
Concerns over international trade cloud recovery in Irish services sector
Concerns surrounding international trade continue to linger despite a partial recovery in the services sector, the latest AIB Services Purchasing Managers Index (PMI) said. The AIB Irish Services PMI for May indicated an acceleration in growth in the sector, with the index rising to 54.7 from 52.8 in April, driven by stronger new business growth and a recovery in output expectations, albeit outstanding business and employment growth both eased. A reading above 50 indicates an overall increase compared to the previous month, and below 50 indicates an overall decrease. 'Overall, the rate of growth in the Irish services sector outperformed the eurozone, UK, and US flash PMIs for May, at 48.9, 50.2, and 52.3 respectively,' said AIB chief economist David McNamara. Both new business and export business increased during the month, although export growth was more subdued. Growth of business activity at Irish service providers strengthened in May, reflecting a pick-up in new work inflows. The rate of expansion was the second-fastest in 2025 so far and in line with the 2024 average. Three of the four services sub-sectors expanded in May. Technology, media, and telecoms (59.1) recorded the fastest expansion of business activity in May, followed by business services (56.0) and financial services (54.2). Transport, tourism, and leisure (47.0) registered a third successive monthly decline in activity and at the fastest rate since October 2023. Transport, tourism, and leisure also posted a decline in employment for the first time since August 2024. The rate of growth in new business recovered in May, having slowed to a weak pace in April. That said, the seasonally adjusted New Business Index remained below its long-run average. Cost pressures eased notably in financial services, with technology, media, and telecoms — the only other area to record a slower increase than in April. The AIB Ireland Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies. Read More David McNamara: Signs of easing on Irish jobs market
Reuters
05-05-2025
- Business
- Reuters
Canada's services PMI shows steep contraction in April activity
TORONTO, May 5 (Reuters) - Canada's services economy contracted for a fifth straight month in April as uncertainty around trade policy and the Canadian general election weighed on activity, S&P Global's Canada services PMI data showed on Monday. The headline Business Activity Index was at 41.5 last month, edging up from a near five-year low of 41.2 in March but well below the 50.0 no-change mark that separates growth from contraction. "Canada's service sector economy faced another challenging month, with activity declining steeply and new business volumes again down sharply," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. "Firms again linked these weak trends to widespread economic and political uncertainty, in turn linked to trade policies and, at the time of survey data collection, the general election." The Liberal Party retained power in Canadian parliamentary elections on Monday but fell short of the outright majority that Prime Minister Mark Carney had sought to help negotiate with the United States on trade tariffs. Canada sends about 75% of its exports to the United States, including steel, aluminum and autos which have been hit with hefty U.S. duties. The Bank of Canada says that a long-lasting global trade war could trigger a significant recession in Canada. The New Business Index rebounded only slightly to 41.9 from 41.3 in March, while the measure of employment showed job losses for a fourth straight month. "Adding to the woes of service providers, firms felt compelled to reduce their output charges for the first time in over four years," Smith said. The Prices Charged Index showed that selling prices declined for the first time since March 2021, which squeezed margins as input cost inflation remained high. The S&P Global Canada Composite PMI Output Index fell to 41.7 last month from 42.0 in March, marking the steepest contraction in output since June 2020 when the COVID-19 pandemic was underway. Data last Thursday showed a deeper contraction in Canadian factory activity in April. The S&P Global Canada Manufacturing PMI was at 45.3, down from 46.3 in March.
Reuters
05-03-2025
- Business
- Reuters
Canada's services PMI falls to 5-month low on tariff concerns
TORONTO, March 5 (Reuters) - The downturn in Canada's services economy deepened in February as firms avoided committing to new business in anticipation of a trade war, S&P Global's Canada services PMI data showed on Wednesday. The headline Business Activity Index fell to 46.6 from 49.0 in January, the third straight month below the 50.0 no-change mark and the lowest level since September. A reading below 50 shows a contraction in activity. "February saw the Canadian service sector hit hard by the spectre of tariffs being applied to all goods and services crossing the border with the U.S.," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement." "Panellists widely reported that market activity had been paralysed by tariff uncertainty, with clients unwilling to commit to new business as they waited to see the size and scope of any changes to respective Canadian and U.S. trade policies." U.S. President Donald Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday. Canadian Prime Minister Justin Trudeau said Ottawa was launching 25% tariffs on C$30 billion ($20.7 billion) worth of U.S. imports. The New Business Index was at 45.1, down from 49.4 in January, and the measure of new export business slumped to 38.7, its lowest level since December 2020. "Confidence amongst service providers themselves was inevitably impacted ... This meant firms adopted an increasingly cautious attitude, cutting employment noticeably and to the greatest degree since June 2020," Smith said. The Employment Index was at 47.3, down from 48.3 in January, while the measure of input prices rose to a four-month high of 60.4 as a weaker Canadian dollar contributed to increased costs. The S&P Global Canada Composite PMI Output Index fell to 46.8 last month from 49.5 in January, marking the steepest contraction in output since January 2024. Data on Monday showed that Canadian manufacturing activity contracted for the first time in six months in February. The manufacturing PMI was at 47.8, down from 51.6 in January.
Yahoo
05-02-2025
- Business
- Yahoo
Canada's services PMI shows activity shrinking in January
By Fergal Smith TORONTO (Reuters) - Canada's services economy deteriorated for the second straight month in January as uncertainty generated by the threat of U.S. trade tariffs offset lower borrowing costs, S&P Global's Canada services PMI data showed on Wednesday. The headline Business Activity Index rose to 49.0 from 48.2 in December but remained below the 50.0 no-change mark. A reading below 50 shows a contraction in activity. "Panellists continued to note soft underlying market demand, with uncertainty weighing on business decisions," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. "Whilst firms are looking to lower interest rates to help stimulate growth, tariff worries ensured that confidence amongst panellists remained well below trend." U.S. President Donald Trump suspended his threat of steep tariffs on Mexico and Canada on Monday, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighboring countries. To support the economy, the Bank of Canada last Wednesday cut its benchmark interest rate by a further 25 basis points to 3%. The New Business Index was also below 50 for a second straight month, while the employment measure slipped into contraction for the first time since September. The measure of future activity was at 60.9, up from 60.1 in December, but below the 64.4 average since the first reading in December 2017. The S&P Global Canada Composite PMI Output Index edged up to 49.5 from 49.0 in December, held back by the deterioration in the service sector. Data on Monday showed that Canada's manufacturing PMI fell to 51.6 in January from 52.2 in December. Sign in to access your portfolio
Reuters
05-02-2025
- Business
- Reuters
Canada's services PMI shows activity shrinking in January
TORONTO, Feb 5 (Reuters) - Canada's services economy deteriorated for the second straight month in January as uncertainty generated by the threat of U.S. trade tariffs offset lower borrowing costs, S&P Global's Canada services PMI data showed on Wednesday. The headline Business Activity Index rose to 49.0 from 48.2 in December but remained below the 50.0 no-change mark. A reading below 50 shows a contraction in activity. "Panellists continued to note soft underlying market demand, with uncertainty weighing on business decisions," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. "Whilst firms are looking to lower interest rates to help stimulate growth, tariff worries ensured that confidence amongst panellists remained well below trend." U.S. President Donald Trump suspended his threat of steep tariffs on Mexico and Canada on Monday, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighboring countries. To support the economy, the Bank of Canada last Wednesday cut its benchmark interest rate by a further 25 basis points to 3%. The New Business Index was also below 50 for a second straight month, while the employment measure slipped into contraction for the first time since September. The measure of future activity was at 60.9, up from 60.1 in December, but below the 64.4 average since the first reading in December 2017. The S&P Global Canada Composite PMI Output Index edged up to 49.5 from 49.0 in December, held back by the deterioration in the service sector. Data on Monday showed that Canada's manufacturing PMI fell to 51.6 in January from 52.2 in December.
