Saturday, January 5, 2013

Global Services Sector Growth Steady

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JPMorgan and Markit Global Indexes

December PMI data signalled a further solid increase in global service sector business activity. Companies benefited from the fastest growth in new orders since March 2012, encouraging many to raise employment.

At 54.8 in December, unchanged from November's eight month high, the JPMorgan Global Services Business Activity Index – a composite index produced by JPMorgan and Markit in association with ISM and IFPSM - signalled expansion for the forty-first month in a row. The average reading for Q4 2012 as a whole is 53.8, the highest since the opening quarter of that year

Global Services PMI by Month

David Hensley, Director of Global Economics Coordination at JPMorgan, said: "Growth of the global service sector was maintained at November's eight-month peak, rounding off a positive final quarter of 2012 for service providers. Ongoing upturns in both new business and employment also bode well for growth trends in the opening quarter of 2013".

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Seeking Alpha