Monday, November 19, 2012

Global Services Sector Growth Slows in October

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JPMorgan and Markit Global Indexes

Global Services PMI by Month

The rate of expansion in the global service sector moderated at the start of Q4 2012, as growth of both business activity and new business eased in October.

The JPMorgan Global Services Business Activity Index – a composite index produced by JPMorgan and Markit in association with ISM and IFPSM – edged down to 52.1 in October, from September's six-month high of 53.8. The headline index has nonetheless signalled expansion in each of the past 39 months.

David Hensley, Director of Global Economics Coordination at JPMorgan, said: "The global service sector continued to expand in October. Although rates of growth in both output and new orders lost momentum, companies were sufficiently encouraged to raise employment for the second time in the past three months. Cost pressures also remained elevated compared to mid-year."

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