Latest news with #PurchasingManagers'Index
Business Recorder
4 days ago
- Business
- Business Recorder
Risks in agri sector: FY26 growth target challenging: SBP
KARACHI: The State Bank of Pakistan (SBP), in a briefing to analysts, has said that the GDP growth target of 4.2 percent for FY26 is considered achievable but remains challenging, primarily due to risks in the agriculture sector. According to Arif Habib Limited Research, in the Analyst Briefing, it was mentioned the projected growth is expected to be driven by industrial and services sectors, buoyed by robust import volumes, a rebound in auto sales, rising capacity utilization, improved employment sentiment, and a Purchasing Managers' Index (PMI) consistently above 50 since December 2024. Moreover, Governor SBP Jameel Ahmed informed that the SBP will release its own assessment in July, which will include projections for GDP, inflation, current account, and FX reserves. FY25 debt repayments amounted to $25.8 billion are almost fully settled, only $400 million pending. FY26 debt servicing to remain similar; exact details will be shared in the next MPC. SBP BSC & Bank of Punjab join hands for Agri Kissan Mela The SBP anticipates a current account surplus for FY25, with improved external buffers going into FY26. FY25 remittances projected at $38 billion for FY25, up from $31.3 billion last fiscal year. The $7 billion jump is largely due to a one-time shift from informal to formal channels. Incentives are being designed in coordination with banks and government to maintain the formal inflow trend. The OMO stock increased mainly due to two reasons higher currency in circulation during Eid and secondly time lag between debt repayments and incoming inflows. However, OMO levels are expected to decline in the coming weeks as inflows materialize. It was informed that the SBP's profit of Rs 2.4 trillion will be transferred to the government after audit and Board approval in early FY26. This figure was validated by SBP and included in the FY26 budget. Since the 2022 SBP Act amendment, profit is transferred annually, not quarterly. The SBP confirms it is on track to meet the June NIR target under the IMF program. Additionally, the Dec'24 target was also met with a wide margin. The SBP mentioned that its baseline oil price assumption is USD 75/barrel. According to Topline Research for the next fiscal year (FY26), Governor SBP Jameel Ahmed mentioned that external debt repayments will be more or less the same. Copyright Business Recorder, 2025
Yahoo
10-06-2025
- Business
- Yahoo
Nissan, Bridgestone confirm layoffs in May amid uncertain demand
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. As manufacturers continue to navigate an uncertain operating environment amid the Trump administration's tariff policies, several companies turned to layoffs to cut costs. The job cuts occurred even as President Donald Trump remains adamant that tariffs will usher in a new era of U.S. manufacturing and spur companies to onshore production to the United States. The Institute for Supply Management's May Purchasing Managers' Index showed the industry in contraction last month as production remains muted and manufacturers run through much of the dwindling inventory they had ordered ahead of tariffs. More manufactures turned to layoffs as the primary measure to reduce headcount as near-term demand remains uncertain, according to ISM. Here are some of the major layoffs announced or confirmed in May. Nissan Motor Co. unveiled plans for massive job cuts last month, announcing 20,000 layoffs around the globe. The automaker will also close seven plants as part of the cost-cutting plan. The job cuts will take place by fiscal year 2027, according to the company. Nissan provided no details on which plants would be shuttered, but said impacted job functions would include direct and indirect roles and contractual positions in manufacturing, administrative, sales and research and development. The company also aims to streamline plant operations and cut capital expenses as it works to regain profitability by FY2026. Tire manufacturer Bridgestone Americas confirmed plans to lay off 658 workers in La Vergne, Tennessee, beginning July 31. The company announced plans to shutter the La Vergne factory in January as it shifts operations to another plant in Morrison, Tennessee. Bridgestone cited the factory's age and high output costs as reasons for the closure. The company has undergone multiple rounds of layoffs or other staff reductions over the past year — Bridgestone laid off 118 workers in Des Moines, Iowa last summer, and also offered buyouts to workers at the plant in January amid falling tractor demand. Mattress maker Serta Simmons Bedding plans to lay off 180 workers from its factory in Moreno Valley, California, according to a May 6 Worker Adjustment and Retraining Notification. The layoffs will begin July 5, according to the notice. Serta operates 18 manufacturing plants across the U.S. and Canada as one of the country's largest bedding manufacturers. After filing for bankruptcy in 2023, the company has named several new executive leaders as part of a turnaround plan. Serta has opened at least one new factory since then, a 500,000-square-foot factory in Wisconsin. Chemical manufacturer Ineos is laying off 82 workers in Ohio as it closes its Addyston plant in the southwestern region of the state. The company plans to cut workers across multiple rounds of layoffs between this August and March 2026, according to a WARN notice. The company first announced plans to close the plant, which produces the engineering plastic acrylonitrile butadiene styrene, last October. Ineos cited increasing competition, particularly from foreign imports, as contributing to the decision. 'After a thorough analysis, we concluded that the substantial investment needed to continue operations and achieve profitable cost competitiveness makes this site no longer economical," Steve Harrington, CEO of Ineos Styrolution and Ineos ABS, said in an October statement. Electrical equipment manufacturer Lacroix Electronics plans to shutter its sole U.S. facility in Grand Rapids, Michigan, laying off 115 workers, according to a May 15 WARN notice. The company noted that while it is "actively seeking investment to continue its operations in Grand Rapids," the contract manufacturer will begin layoffs this summer, with the final job cuts occurring by the end of the year. Lacroix operates five other plants across Poland, Germany, France, Tunisia and Mexico. The Michigan plant was established in 1980, servicing automotive, industrial and healthcare clients. Recommended Reading How data is helping manufacturers streamline hiring Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
10-06-2025
- Business
- Time of India
India's power demand falls 4.3% to 149 BUs in May due to unseasonal rains, industrial slowdown: Report
New Delhi: India's electricity demand declined by 4.3 per cent year-on-year in May 2025 to 149 billion units (BUs), down from 155 BUs in May 2024, according to a report by Crisil Intelligence . The drop was attributed to unseasonal rainfall and easing industrial activity. Rainfall during the period from May 1 to 28 stood at 103.5 mm, which was 91 per cent above the historical average of 56.8 mm, the report stated. The early arrival of the southwest monsoon and lower average temperatures contributed to the cooling in demand. The monsoon arrived eight days ahead of schedule this year, marking the earliest onset since 2009 The northern region saw an 8 per cent fall in power demand compared with a 30 per cent increase in the same month last year. The Indian Meteorological Department data showed 443 per cent excess rainfall in central India, 171 per cent in the southern region, and 31 per cent in the north-west. Crisil Intelligence said that the demand downturn was also driven by reduced industrial activity. India's seasonally adjusted Purchasing Managers' Index (PMI) dropped to 57.6 in May 2025, the lowest in three months. This figure, while above the long-term average of 54.1, indicated slower growth in output and new orders compared to April. In the power market, the Real Time Market (RTM) registered a 42 per cent year-on-year growth in traded volumes, reaching 4,770 million units (MUs) in May 2025. By contrast, the Day Ahead Market (DAM) volumes declined 20 per cent to 3,510 MUs. Average Market Clearing Price (MCP) in the RTM declined 28 per cent to ₹3.43 per unit in May 2025. During solar hours (11 am–4 pm), MCP averaged ₹2.2 per unit, while during non-solar hours it averaged ₹3.8 per unit. The corresponding figures for May 2024 were ₹3.5 and ₹5.2 per unit, respectively. The share of RTM in total power traded on the Indian Energy Exchange rose to a record 44 per cent in May 2025, up from the average of 24 per cent recorded since June 2020. On the supply side, total power generation in May declined 4.1 per cent year-on-year to 160 BUs. Coal-based power generation dropped 7.4 per cent. In contrast, generation from nuclear and hydro sources increased 14.7 per cent and 14.8 per cent respectively. Renewable energy generation also grew by 10.4 per cent. Coal's share in the total generation mix fell to 69 per cent from 72 per cent in May 2024. Renewable energy's share rose to 15.5 per cent, while hydro and nuclear accounted for 9 per cent and 3.2 per cent, respectively. Coal stock levels at thermal power plants improved due to reduced power generation. By May 31, 2025, coal stock stood at 60 million tonnes, up from 48 million tonnes a year earlier, providing 21 days of inventory compared with 16 days in May 2024. Crisil Intelligence stated that while weather was the key reason for the demand drop in May, demand going forward will depend on consumption by industrial and commercial segments, which together account for nearly 50 per cent of India's electricity usage.
Al Etihad
08-06-2025
- Business
- Al Etihad
Global business activity picks up pace in May, PMI data shows
8 June 2025 13:21 A. SREENIVASA REDDY (ABU DHABI)Global economic conditions appear to be improving as the latest Purchasing Managers' Index (PMI) surveys indicated a modest acceleration in output and new orders during JPMorgan Global Composite PMI Output Index rose to 51.2 in May from April's 17-month low of 50.8, signalling expansion for 28th month in a improvement comes amid a general pick-up in both current and expected global growth. Rates of expansion in output and new orders accelerated from April's near one-and-a-half-year lows, while business optimism recovered after hitting its lowest level since May equivalent indices for manufacturing and services posted 49.1 and 52.0 is a key economic indicator measuring business activity in the manufacturing and services sectors. A reading above 50 signals expansion, while below 50 indicates JPMorgan Global Composite PMI is compiled from monthly survey responses collected from around 27,000 companies in over 40 countries, representing 89% of global GDP. The survey provides the first indication each month of worldwide economic business conditions, enabling decision makers in the financial world and in government to make better judgements much earlier than would otherwise be the case.'The global all-industry output PMI recovered 0.4-pt to 51.2 last month, rising to a level consistent with trend-like global growth,' said Maia Crook, Global Economist at JPMorgan. 'The increase was driven by a service PMI recovery, while a payback in activity from earlier front-loading weighed on the manufacturing output the output PMIs diverged, both services and manufacturing showed an encouraging jump in business confidence, taking the all-industry future output PMI up 3.3-pts. The employment PMI also improved from prior recession-like this constructive global growth picture was a notable regional divide, as a sharp drop in China's composite output PMI was offset by a US rebound.'According to the report, the weakness was mainly centred in the manufacturing sector, where production returned to contraction following four months of expansion. Output declined in both the intermediate and investment goods sectors, although growth was sustained in consumer goods. In contrast, the service sector saw an acceleration in activity growth, with output rising across business, consumer, and financial remained at the top of the global output growth rankings, followed by Ireland. The US recorded a solid rate of expansion, while the euro area, Japan, and the UK saw modest or marginal China, however, returned to contraction, with manufacturing output declining at the quickest pace since November 2022. Output also contracted in Germany, France, Brazil, and Canada, with Canada experiencing the sharpest downturn business increased for 19th consecutive month in May, though only slightly. International trade remained weak, with new export orders falling for a second straight month. Only India and Australia registered increases in new export also saw employment rise for the second time in three months, as job creation in services offset losses in manufacturing. Optimism about future output improved significantly, with the Future Output Index rising from 57.4 to 60.7, although it remained below its long-run average for the 12th successive month. Meanwhile, input cost and output price inflation both quickened. Input prices hit a 25-month high and output charges rose at the fastest pace in 14 months, mainly driven by stronger increases among service providers. In contrast, price pressures in manufacturing continued to ease. Source: Aletihad - Abu Dhabi
New Indian Express
06-06-2025
- Business
- New Indian Express
MPC outcome: RBI seen poised for aggressive rate cut
CHENNAI: The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, concludes its three-day meeting today (June 6, 2025). Amid escalating global trade tensions stemming from new US tariffs imposed by President Donald Trump, expectations are mounting for an aggressive monetary easing by the RBI. Markets and analysts widely anticipate a 25 basis points (bps) cut, with some forecasting a jumbo 50 bps reduction to sustain domestic growth momentum and offset external headwinds. With recent cuts February and April this year by 25 bps each, the current REPO rate stands at 6%. These cuts have already prompted commercial banks to pass on benefits through reductions in External Benchmark-based Lending Rates (EBLRs) and Marginal Cost of Funds-based Lending Rates (MCLR), indicating effective policy transmission so far. Key Drivers Behind Rate Cut Expectations 1. Global Economic Uncertainty Trade Tensions: President Trump's renewed tariff actions have stoked fears of a global economic slowdown, weakening investor sentiment and external demand for Indian exports. Oil Prices & Global Demand: Volatility in crude oil markets due to geopolitical tensions may strain India's import bill and inflationary trajectory. 2. Domestic Growth Concerns India's Q1 FY26 GDP growth showed signs of deceleration due to weaker exports and subdued private consumption. Industrial production has softened, and the Purchasing Managers' Index (PMI) readings for both manufacturing and services have moderated slightly. 3. Benign Inflation Outlook Headline CPI inflation remains within the RBI's medium-term target range of 4%. Food inflation, although showing seasonal upticks, is largely under control. Core inflation remains muted due to weak demand. 4. Fiscal Policy Stance The Union Government's fiscal policy continues to be growth-supportive, but with limited space for large-scale stimulus, pressure shifts to the RBI for counter-cyclical support. Market Expectations The market expects another 25 bps cut as the most likely outcome the latest MPC meeting, aligning with RBI's cautious and data-dependent approach. However, there is a strong possibility of 50 bps cut if the RBI opts for preemptive, front-loaded easing to bolster sentiment and activity. Although unlikely, but not off the table, RBI may even opt for a status quo if the it views current liquidity and rate settings as adequate. Implications of a Rate Cut In the current scenario the impact of 25 bps cut will result in the rate of 5.75%, which can provide moderate boost to liquidity and credit demand The market watchers observe that the June 2025 MPC meeting is likely to result in at least a 25 bps repo rate cut, with a 50 bps cut a close contender given the increasing external risks and domestic growth slowdown. The decision will reflect the RBI's assessment of global trade dynamics, domestic inflation stability, and the effectiveness of past transmission. A forward-looking and accommodative stance is expected to continue, with future action contingent on evolving macroeconomic indicators and external shocks, said a banking sector analyst.
