US DATA: Service Sector Firms Struggling To Pass On Increased Costs
Feb-05 14:36
- The S&P Global Canadian services PMI increased to 49.0 in January from 48.2 in December, an improvement on the month but still one pointing to a decline in activity.
- The composite PMI remained in contractionary territory, rising from 49.0 to 49.5.
- The press releases details declining activity along with higher input costs but firms struggling to pass on costs:
- "Canada’s service sector experienced a second successive monthly decline in business activity during January amid a further reduction in incoming new business volumes. Market demand was reported to be subdued and, with evidence of spare capacity, service companies chose to reduce staffing levels for the first time in four months.
- Meanwhile, operating expenses continued to rise sharply, amid reports of higher prices for a wide array of inputs. Output charge inflation was relatively modest in comparison as firms struggled to pass on increased costs to clients."
- See the full press release here.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
CANADA DATA: Highest PMI Service Price Inflation Since May Despite Soft Demand
Jan-06 14:35
- The S&P Global Canada services PMI fell to 48.2 in December from 51.2 in Nov, implying its services economy contracted for the first time in three months.
- The press release shows a contrast between subdued demand and notably intensifying price pressures:
- "Canada’s services economy contracted for the first time in three months at the end of 2024. Market demand was reported to be subdued, with the downturn in the sector worsened by postal strikes. Firms nonetheless continued to fill long-held vacancies at their units, which meant that backlogs of work declined sharply. Cost pressures meanwhile intensified amid reports of higher wage bills. Output charges were raised in response to the greatest degree since May."
CROSS ASSET: Trump Denies Watering Down Of Tariffs, USD Bid, Stocks & Bons Sold
Jan-06 14:31
Some of the late London morning moves reverse as Donald Trump posts the following on Truth Social: "The story in the Washington Post, quoting so-called anonymous sources, which don't exist, incorrectly states that my tariff policy will be pared back. That is wrong. The Washington Post knows it's wrong. It's just another example of Fake News."
- The BBDXY recovers just over 50% of the losses seen following the Washington Post Story.
- Tsy yields now flat to 2bp higher on the day, curve steeper.
- Euro Stoxx 50 futures pare nearly all of their Washington Post-inspired rally before stabilising.
EQUITIES: US Cash Opening calls
Jan-06 14:28
SPX: 5,991.8 (+0.8%); DJIA: 42,923 (+0.4%/+190pts); NDX: 21,556.7 (+1.1%).
