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The J.P.Morgan Global Services Business Activity Index rises to 53.5 in March

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Capital Market
Last Updated : Apr 11 2014 | 12:02 AM IST
The J.P.Morgan Global Services Business Activity Index increased for the eighteenth successive month in March at 53.5, up slightly from February's four-month low of 52.7.

Nine out of the thirteen nations for which March data were available reported an increase in services output. Rates of expansion gained in the US, China, Spain, Brazil and Ireland, but slowed in Germany and the UK. Japan and France returned to growth after contractions in February. In contrast, business activity fell in Italy, Russia, India and Hong Kong.

The latest expansion in output was underpinned by rising levels of incoming new business, as March saw new orders rise for the fifty-sixth consecutive month. However, the pace of expansion in new work slipped to its weakest since last June. Rates of increase in new business eased in the US (18-month low), the UK (ten-month low), and also in the Eurozone, China and Brazil.

The ongoing recovery encouraged further job creation and provided a boost to service provider's business confidence. Employment has now risen in each month since March 2010. However, the rate of jobs growth has been losing impetus through the year-to-date and is currently at a seven-month low.

Job creation was reported in the US, Japan, China, Germany, the UK, India, Ireland, Brazil and Hong Kong. Further losses were registered in France, Italy and Spain, while Russia posted a decrease for the sixth time in the past seven months.

Although average input prices rose for the fifty-fourth successive month in March, the rate of increase was the lowest for almost a year. Cost inflation eased in the US, Europe, Japan, India and Brazil, but accelerated in China and Russia.

Average service charges rose again in March. However, the rate of increase slowed further. The US, China and Russia were the only nations to register faster inflation of output prices.

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First Published: Apr 10 2014 | 10:58 AM IST

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