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Russia’s services sector slips back into contraction posting 49.5 as demand softens Russia’s services sector returned to contraction in March, as weaker demand weighed on activity despite a modest improvement in business confidence, according to data published by S&P Global on April 3.

Russia’s services sector returned to contraction in March, as weaker demand weighed on activity despite a modest improvement in business confidence, according to data published by S&P Global on April 3. Bne IntelliNews #Russia #Economy #ServicesSector #BusinessConfidence #EconomicIndicators

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China Services PMI Eases to 52.1; Domestic Demand Holds China services PMI slowed to 52.1 in March from 56.7 in Feb (Apr 3, 2026), signalling slower expansion with employment falling for a second month.

China Services PMI Eases to 52.1; Domestic Demand Holds: China services PMI slowed to 52.1 in March from 56.7 in Feb (Apr 3, 2026), signalling slower expansion with employment falling for a second month. 👈 Read full analysis #ChinaEconomy #PMI #ServicesSector #EconomicGrowth #DomesticDemand

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China Services PMI Slows to 52.0 in March Caixin/S&P Global services PMI fell to 52.0 in March from 55.0 in February (Bloomberg Apr 3, 2026), pointing to weaker post-holiday consumer demand and downside risk to Q2 consumption.

China Services PMI Slows to 52.0 in March: Caixin/S&P Global services PMI fell to 52.0 in March from 55.0 in February (Bloomberg Apr 3, 2026), pointing to weaker post-holiday consumer demand and downside risk to Q2… 👈 Read full analysis #China #PMI #ServicesSector #ConsumerDemand #EconomicTrends

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Japan PMI Falls to 49.6 in March Japan's composite PMI fell to 49.6 in March 2026; manufacturing hit 48.9 and services 49.8, marking three-month lows and prompting equity and FX repricing (S&P Global/Seeking Alpha).

Japan PMI Falls to 49.6 in March: Japan's composite PMI fell to 49.6 in March 2026; manufacturing hit 48.9 and services 49.8, marking three-month lows and prompting equity and FX repricing (S&P… 👈 Read full analysis #JapanPMI #EconomicGrowth #Manufacturing #ServicesSector #MarketTrends

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Japan PMI Slips to 52.5 in March as Momentum Cools Japan's flash composite PMI fell to 52.5 in March from 53.9 in Feb; manufacturing dropped to 51.4 and services to 52.8, signaling slower private-sector expansion.

Japan PMI Slips to 52.5 in March as Momentum Cools: Japan's flash composite PMI fell to 52.5 in March from 53.9 in Feb; manufacturing dropped to 51.4 and services to 52.8, signaling slower… 👈 Read full analysis #JapanPMI #EconomicIndicators #Manufacturing #ServicesSector #PrivateSector

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Malaysia’s Services Volume Index Grows 6.5% in Fourth Quarter of 2025 PETALING JAYA: Malaysia’s services sector maintained strong growth momentum in the fourth quarter of 2025, with the Services Volume Index expanding by 6.5 per cent year-on-year, reflecting broad-based improvements across all major service segments. According to the latest report released by the Department of Statistics Malaysia (DOSM), the overall index rose to 167.7 points, supported …

Malaysia’s Services Volume Index Grows 6.5% in Fourth Quarter of 2025 #Malaysia #ServicesSector #EconomicGrowth #StatisticsMalaysia #ServiceIndustry

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Malaysia’s Services Producer Prices Remain Steady at 1.0pc in Q4 2025, Transport and F&B Drive Growth KUALA LUMPUR: Malaysia’s Services Producer Price Index (SPPI) rose by one per cent in the fourth quarter of 2025, maintaining the same growth rate for the third consecutive quarter, according to the Statistics Department Malaysia (DOSM). Chief Statistician Mohd Uzir Mahidin said the latest figures indicate stable price movements across the services sector, despite variations …

Malaysia’s Services Producer Prices Remain Steady at 1.0pc in Q4 2025, Transport and F&B Drive Growth #Malaysia #Economy #ServicesSector #ProducerPrices #Statistics

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Russian services PMI posts strongest growth in a year despite inflation surge from VAT hike Russia’s service sector began 2026 with its fastest pace of expansion in 12 months, fuelled by rising demand and new orders, though a sharp acceleration in inflationary pressures linked to a VAT increase clouded the outlook, reports S&P Global.

Russia’s service sector began 2026 with its fastest pace of expansion in 12 months, fuelled by rising demand and new orders, though a sharp acceleration in inflationary pressures linked to a VAT increase clouded the outlook,… Bne IntelliNews #Russia #PMI #ServicesSector #EconomicGrowth #Inflation

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The US ISM Services PMI surprisingly rose to 54.4 in Dec 2025, suggesting a stronger services sector than expected, contrasting with mixed job market data. A key indicator for economic resilience. 📈💡 #USEconomy #ServicesSector #EconomicData

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Russia's services sector PMI expands in November despite muted private sector growth Russia’s services economy registered a modest expansion in November, according to new survey data from S&P Global, even as the broader private sector showed signs of stagnation.

Russia’s services economy registered a modest expansion in November, according to new survey data from S&P Global, even as the broader private sector showed signs of stagnation. Bne IntelliNews #Russia #ServicesSector #PMI #EconomicGrowth #PrivateSector

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Ireland’s Service Sector Surges to 3½-Year High in November - Ireland’s services sector posted its strongest expansion in over three years in November, driven by rising activity, new business,...

Ireland’s Service Sector Surges to 3½-Year High in November
wiobs.com/irelands-ser...
#IrelandEconomy #ServicesSector #BusinessGrowth #AIBPMI #MarketTrends #EconomicRecovery #Finance #TechSector #TourismIreland

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India’s services sector slows but stays strong as price pressures ease October’s services PMI dipped to a five-month low of 58.9, but easing inflation and steady demand signal a resilient economy heading into the festive season.

India’s services growth slowed to a five-month low, but inflation eased and demand stayed strong. The slowdown looks more like balance than trouble. #IndiaEconomy #PMI #ServicesSector

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Kazakhstan’s services sector enters negative zone for first time in 10 months, October PMI shows Business confidence remains historically subdued.

Business confidence remains historically subdued. Bne IntelliNews #Kazakhstan #ServicesSector #PMI #BusinessConfidence #EconomicGrowth

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Good news: Bihar's GSDP grew 11.1% annually recently 📈! But it's from a low base. Services sector share shrunk from 61.2% to 54.8% 📉, a worrying trend for high-paying jobs. #Growth #Economy #ServicesSector

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UK August flash services PMI 53.6 vs 51.8 expected * Prior 51.8 * Manufacturing PMI 47.3 vs 48.3 expected * Prior 48.0 * Composite PMI 53.0 vs 51.6 expected * Prior 51.5 Key Findings: * Strongest rise in UK private sector business activity since August 2024 Comment: Chris Williamson, Chief Business Economist at S&P Global Market Intelligence: “The flash UK PMI survey for August indicated that the pace of economic growth has continued to accelerate over the summer after a sluggish spring, the rate of expansion now at a one-year high. The services sector has led the expansion, but manufacturing also showed further signs of stabilising. "It’s evident from survey measures of order books, however, that the demand environment remains both uneven and fragile. Companies report concerns over the impact of recent government policy changes, as well as unease emanating from broader geopolitical uncertainty. Goods exports are still falling especially sharply. "Payroll numbers also continue to be cut at an aggressive rate by historical standards as firms cite weak order books and concerns over rising staff costs due to the policies announced in the autumn Budget, which also contributed to persistent inflation pressures. "While the rise in business activity signalled by the PMI alongside the uplift in inflation to 3.8% in July lower the chances of further rate cuts this year, more data are required to assess both the sustainability of robust economic growth as well as the stickiness of the upturn in price pressures. Among a divided Bank of England rate setting committee, the perceived need for any future rate cuts will be very much data dependent." This article was written by Giuseppe Dellamotta at investinglive.com.

| etsy.me/3RHihSQ | ctrendfx.com #UKPMI #EconomicGrowth #BusinessActivity #Manufacturing #ServicesSector

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US services activity flatlined in July, ISM data shows (Reuters) -U.S. services sector activity unexpectedly flatlined in July with little change in orders and a further weakening in employment even as input costs climbed by the most in nearly three years, underscoring the ongoing drag of uncertainty over the Trump administration’s tariff policy on businesses. The Institute for Supply Management (ISM) said on Tuesday its nonmanufacturing purchasing managers index (PMI) slipped to 50.1 last month from 50.8 in June. Economists polled by Reuters had forecast the services PMI would rise to 51.5. A PMI reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of the economy. Economists say businesses continue to struggle to digest the aggressive tariffs President Donald Trump is imposing on goods imported from abroad. Last week Trump, ahead of a self-imposed deadline of August 1, issued a barrage of notices informing scores of trading partners of higher import taxes set to be imposed on their exports to the U.S. With tariff rates ranging from 10% to 41% on imports to the U.S. set to kick in on August 7, the Budget Lab at Yale now estimates the average overall U.S. tariff rate has shot up to 18.3%, the highest since 1934, from between 2% and 3% before Trump returned to the White House in January. The ISM survey’s new orders measure declined to 50.3 last month from 51.3 in June, with export orders falling back into contraction for the fourth time in five months. The survey’s measure of services employment fell to 46.4, the lowest level since March, from 47.2 in June. It has contracted in four of the last five months, and the reading followed the release last week of the Labor Department’s surprisingly soft U.S. employment report. Not only was job creation softer than expected in July, previously reported job growth for May and June was revised lower by 258,000 positions, marking the biggest net downward revision on record outside of the COVID-19 pandemic. The outsized revision led Trump to fire the Bureau of Labor Statistics commissioner on Friday. Price pressures, meanwhile, continue to mount. The survey’s prices paid index rose to 69.9, the highest level since October 2022, from 67.5 in June. Inflation until now has largely remained moderate because businesses have been selling merchandise accumulated before import duties came into effect, but data last week showed prices in some categories of goods like home furnishings and recreational gear have begun rising briskly. More benign inflation from the services sector has helped keep overall inflation in check, but the ISM data brings into question whether that trend will continue or further fan concerns about the emergence of stagflation. Two Fed governors - Christopher Waller and Michelle Bowman - dissented, saying they believed the job market was facing the greater risk - a position seemingly validated by Friday’s weak employment data. They believe competition and softening demand will blunt some of the anticipated price hikes from tariffs and argue the Fed should be lowering rates now to reduce the restraint they are imposing on activity. With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

Click Subscribe. #USEconomy #ISMData #ServicesSector #EconomicIndicators #BusinessTrends

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UK business confidence hits decade high UK business confidence has reached its highest level since 2015. The Lloyds Bank Business Barometer shows optimism climbing for a third straight month in July, with hiring intentions and services sector strength offsetting ongoing cost pressures and uneven regional trends.

UK business confidence hits a 10-year high, with Lloyds Bank’s July Barometer showing optimism at 52% and services leading gains. Hiring and pricing pressures remain key themes. #UKeconomy #BusinessConfidence #ServicesSector

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ISM Services PMI: Decoding the Unseen Influence on Your Economic Blueprint "The upcoming ISM Services PMI offers a critical look into the U.S. services sector's health, impacting the USD, inflation, and economic growth."

A Single Report Moves Markets: Why the ISM Services PMI is a Critical Signal for the U.S. Economy

#ISMServicesPMI #USEconomy #ServicesSector #EconomicIndicator #MarketAnalysis #FactRage #FactRageNews

tglm.us/yNyrX

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Russia’s services sector contracts in June for first time in a year Investing.com -- Russia’s services sector entered contraction territory in June for the first time in a year, according to a business survey released Thursday. The S&P Global Purchasing Managers’ Index (PMI) for Russia’s services sector dropped to 49.2 in June from 52.2 in May. The decline in output was attributed to a less pronounced increase in new orders and weaker client demand. While the rate of contraction was described as slight, S&P Global noted it compared unfavorably with the solid growth pace seen on average throughout the history of the series. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. Before you buy stock in SPGI, consider this: ProPicks AI are 6 easy-to-follow model portfolios created by Investing.com for building wealth by identifying winning stocks and letting them run. Over 150,000 paying members trust ProPicks to find new stocks to buy – driven by AI. The ProPicks AI algorithm has just identified the best stocks for investors to buy now. The stocks that made the cut could produce enormous returns in the coming years. Is SPGI one of them?

Click Subscribe #Russia #ServicesSector #EconomicNews #PMI #BusinessSurvey

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China’s services activity growth hits 9-month low in June, shows Caixin PMI By Liangping Gao and Ryan Woo BEIJING (Reuters) -China’s services activity expanded at the slowest pace in nine months in June, as demand weakened and new export orders declined amid a fragile trade truce with the United States, a private-sector survey showed on Thursday. The Caixin/S&P Global services purchasing managers’ index (PMI), fell to 50.6 from 51.1 in May, marking the weakest expansion since September 2024 but remaining above the 50-mark separating expansion from contraction. The reading was broadly in line with China’s official survey, which showed services activity easing slightly to 50.1 from 50.2 the previous month. The Caixin PMI is considered a better read of trends among smaller, export-oriented firms, particularly along the east coast, while the official PMI primarily tracks large and medium-sized enterprises, including state-owned companies. "Recently, major macroeconomic indicators have shown divergence, with consumption in certain sectors increasing beyond expectations, while the momentum of growth in investment and industrial production has weakened," said Wang Zhe, Senior Economist at Caixin Insight Group. "We must recognise that the external environment remains severe and complex, with increasing uncertainties. The issue of insufficient effective demand at home has yet to be fundamentally resolved," Wang added. Deepening deflationary pressures and a persistent property crisis continued to undercut demand and growth in the world’s second-largest economy. While the U.S. and China have settled on a framework trade deal, analysts expect eventual U.S. tariffs to remain well above historic levels, maintaining pressure on exporters and officials to find alternative markets or boost domestic demand. Expansion in both supply and demand moderated in June, with the new orders sub-index slowing. External uncertainties weighed on service exports, leading to a decline in new export business for the second consecutive month, the fastest rate of contraction since December 2022. Service providers remained cautious on hiring, leading the employment sub-index to decline in June after a previous increase. This led to the fastest accumulation of outstanding business in a year. A slower increase in average input costs, combined with competitive pressures, resulted in the steepest decline in output charges in over three years in June, suggesting intense market competition. The Caixin China General Composite PMI rose to 51.3 in June from 49.6 the previous month. With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

Click Subscribe. #ChinaEconomy #CaixinPMI #ServicesSector #EconomicGrowth #BusinessNews

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UK Economy Contracts 0.3% in April, FTSE 100 Closes Higher Despite GDP Miss | AI News Brew <p>The UK economy experienced an unexpected contraction in April, shrinking by 0.3% compared to March, according to data released by the Office for National Statistics (ONS) on Thursday [1][2][3]. Thi...

UK Economy Contracts 0.3% in April, FTSE 100 Closes Higher Despite GDP Miss
ainewsbrew.com/article/4515

#UKEconomy #GDPContraction #FTSE100 #EconomicData #GlobalTrade #InvestorSentiment #ServicesSector #EconomicOutlook

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China May services activity grows despite US tariff concerns, Caixin PMI shows BEIJING (Reuters) - China’s services activity expanded at a slightly faster pace in May, with new orders growing more quickly than in April, though new export orders declined due to uncertainty stemming from U.S. tariffs, a private sector survey showed on Thursday. The Caixin/S&P Global services purchasing managers’ index (PMI), rose to 51.1 in May from 50.7, remaining above the 50-mark that separates expansion from contraction. The reading was broadly in line with China’s official survey, which showed services activity edging up to 50.2 from 50.1 the previous month. The Caixin PMI is considered a better read of trends among smaller, export-oriented firms, particularly along the east coast, while the official PMI primarily tracks large and medium-sized enterprises, including state-owned companies. China’s economy grew faster than expected in the first quarter, and the government has maintained its annual growth target of around 5%. However, analysts warn that U.S. tariffs could significantly dampen momentum. Beijing and Washington have agreed to a 90-day pause during which both would cut import tariffs, raising hopes of easing tensions. Yet investors remain concerned that negotiations could progress slowly amid persistent global economic risks. "On the external demand front, new export orders remained sluggish in both the manufacturing and services sectors. Average costs for businesses rose slightly, but selling prices continued to weaken, increasing profit pressure," said Zhe Wang, senior economist at Caixin Insight Group. However, faster services growth failed to offset a drop in manufacturing production. The Caixin China General Composite PMI fell to 49.6 from 51.1 the previous month, marking the first contraction since December 2022. Last month, the central bank eased monetary policy to limit damage from the trade war with Washington, and lowered the ceiling for deposit rates to offset margin pressure on banks and prompt savers to spend or invest more. Both supply and demand expanded at a slightly quicker pace, as businesses sought to attract new clients. However, foreign demand weakened due to U.S.-China tariff uncertainty, with new export orders declining for the first time this year, the survey showed. Employment-related indices remained slightly above the 50-mark. Some firms continued to reduce headcounts to cut costs, while others hired more workers to meet rising demand. Service sector businesses faced the fastest input cost inflation since October 2024, driven by higher purchase prices and wages. Average output charges declined for the fourth month in a row in May. Overall sentiment over the next 12 months remained positive in the sector, with companies optimistic that the negative effects of U.S. tariffs may diminish over time. "In terms of policy, the lasting impact of earlier consumption-stimulating measures needs further evaluation," Wang added "More importantly, boosting domestic demand should be grounded in improving household incomes." With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

Click Subscribe. #ChinaEconomy #ServicesSector #CaixinPMI #EconomicGrowth #USTariffs

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Pink flags seen as services slips into contraction for first time since mid-2024 hereremove ads Mining hereremove ads Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website. It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website. Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Click Subscribe. #Economy #ServicesSector #MarketTrends #Contraction #FinancialNews

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India services sector growth steady in May as demand remains strong, PMI shows BENGALURU (Reuters) -India’s dominant services sector maintained its robust growth in May, fueled by strong export demand and record hiring, although price pressures intensified, a survey showed on Wednesday. The HSBC India Services Purchasing Managers’ Index, compiled by S&P Global, stood at 58.8 in May, marginally up from April’s 58.7 but lower than a preliminary reading of 61.2. It has been above the 50-mark separating growth from contraction for nearly four years. New business - a key gauge for demand - expanded at a sharp pace in May, largely aligned with growth rates seen from February through April. Companies attributed this sustained momentum to advertising efforts, positive demand trends and repeat business from existing clients. This healthy demand environment was particularly evident in international markets, with companies reporting one of the strongest increases in export orders in the survey’s over a decade history. To accommodate the ongoing expansion, service providers ramped up hiring at the fastest rate since the survey began in 2005, with nearly 16% of respondents increasing staff numbers. That, however, contributed to rising cost pressures. Both input costs and output charges increased at faster rates in May, edging above historical averages. Companies reported higher expenses for cooking oil, materials, meat and overtime payments, leading to the strongest input price inflation since January. Growing price pressures could test monetary policy decisions for the Reserve Bank of India (NSE:BOI) (RBI), which has cut the repo rate by 50 basis points this year as inflation remains below its 4.0% target. The RBI is expected to cut rates by another 25 bps to 5.75% on Friday, according to a Reuters poll. Despite cost challenges, business confidence recovered from April’s 23-month low, with companies expressing optimism about future growth based on their expanded workforces, larger client bases and ongoing marketing initiatives. Meanwhile, the HSBC India Composite PMI Output Index, which includes both manufacturing and services, eased slightly to 59.3 in May from 59.7 in April but indicated continued strong expansion in private sector activity. Should you invest $2,000 in BOI right now? Before you buy stock in BOI, consider this: ProPicks AI are 6 easy-to-follow model portfolios created by Investing.com for building wealth by identifying winning stocks and letting them run. Over 150,000 paying members trust ProPicks to find new stocks to buy – driven by AI. The ProPicks AI algorithm has just identified the best stocks for investors to buy now. The stocks that made the cut could produce enormous returns in the coming years. Is BOI one of them?

Click Subscribe. #India #ServicesSector #PMI #EconomicGrowth #BusinessNews

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Services up, goods down: India eyes gains in Trump-era trade order | Policy Circle As #manufacturing exports face fresh hurdles, India’s resilient #services sector may become its strongest lever in the #UStrade equation. #reciprocaltariffs #trumptariffs

As #manufacturing exports face fresh hurdles, India’s resilient #servicessector may become its strongest lever in the #UStrade equation. #trumptariffs #tradewar #indiaustrade
www.policycircle.org/opinion/indi...

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Ransomware Attacks Surge 126%, Targeting Consumer Goods and Services Sector The cybersecurity landscape witnessed a dramatic escalation in ransomware attacks, marking a concerning trend for global businesses.

Ransomware Attacks Surge 126%, Targeting Consumer Goods and Services Sector
gbhackers.com/ransomware-a...

#Infosec #Security #Cybersecurity #CeptBiro #RansomwareAttacks #ConsumerGoods #ServicesSector

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Brazil’s services activity growth beats expectations in February SAO PAULO (Reuters) - Brazil’s services sector grew more than expected in February, according to data from statistics agency IBGE on Thursday, after showing signs in the prior three months of cooling amid tight monetary policy. Services sector activity, the main driver of Latin America’s largest economy, was up 0.8% in February from the previous month, IBGE said, above the 0.1% increase expected by economists polled by Reuters. "In February, the services sector showed widespread growth, with four out of the five activities surveyed having positive results. With this month’s advance, there was a recovery from the loss observed in January," said Rodrigo Lobo, research manager at IBGE. IBGE data earlier this month showed industrial output fell unexpectedly due in part to the negative impact of high interest rates. Brazil’s central bank has hiked rates to bring inflation back to its 3% target. The benchmark interest rate stands at 14.25%, and central bank policymakers have signaled a smaller rate hike at their next meeting as they monitor signs of an economic slowdown. Forward-looking economic indicators, however, support expectations of a robust economy in the first quarter, according to Nicolas Borsoi, chief economist at Nova Futura Investimentos. "Going forward, we expect services activity to benefit from federal fiscal transfers to low-income households with a high propensity to consume," Alberto Ramos, head of Latin America economic research at Goldman Sachs, said in a note. On an annual basis, according to IBGE, services output grew 4.2% in February from February 2024, the 11th consecutive positive reading. Economists in a Reuters poll had forecast a median rise of 3.3%.

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India March services growth moderated, inflation eased sharply, PMI shows BENGALURU (Reuters) - The rapid expansion in India’s dominant services sector cooled slightly in March amid softer demand, despite firms raising prices at the lowest rate in three-and-a-half-years, according to a survey that also showed a deceleration in job creation. The HSBC final India Services Purchasing Managers’ Index, compiled by S&P Global, fell to 58.5 last month from 59.0 in February, but was higher than a preliminary estimate that showed a fall to 57.7. However, it remained comfortably ahead of the 50-mark separating contraction from growth. "Domestic and international demand remained fairly buoyant, despite being sequentially a tick lower than the month before," noted Pranjul Bhandari, chief India economist at HSBC. Domestic demand remained a key driver, with new business showing solid growth, albeit at a less intense pace compared to February. Foreign demand softened and international orders rose at the slowest pace in 15 months, signaling potential vulnerabilities to global economic shifts including from U.S. President Donald Trump’s recently announced tariff measures. Inflationary pressures subsided with input cost inflation rising at its slowest pace in five months. That, along with intense competition, led to the weakest increase in output prices since September 2021. The competitive landscape weighed on business sentiment for the coming year and the future activity index cooled to a seven-month low, affecting employment growth. The pace of hiring additional staff slowed to the lowest in just under a year. "Looking ahead, business sentiment remains generally positive, but intensifying competition presents a significant challenge to many survey participants," added Bhandari. The HSBC India Composite PMI, which included robust manufacturing growth, rose to a seven-month high of 59.5 in March from February’s 58.8, reflecting stronger overall private sector growth. Weaker inflation and poor business confidence could compel the Reserve Bank of India (NSE:BOI) to cut interest rates again, by 25 basis points on April 9, to support an economy which likely grew at its slowest rate in four years last fiscal year.

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