US Private Sector Growth Beats Forecasts đ
The S&P Global Flash US Composite PMI rose to 56.6 in December 2024, indicating the strongest performance of the private sector activity since March 2022, driven by a surge in services while the manufacturing downturn deepened.
The strong performance of the private sector activity, particularly in the services sector, suggests an overall positive economic outlook. This is likely to have a significant positive impact on the investment portfolio, which has significant exposure to the S&P 500, European markets, and other equity-based investments. The improved demand and employment conditions, as well as the easing of inflationary pressures, further support the positive outlook.
India Composite PMI Rises to 4 -Month High đ
The HSBC India Composite PMI increased to 60.7 in December 2024, marking the 41st consecutive month of expansion in private sector activity and the fastest pace since August, driven by faster growth in the manufacturing and services sectors.
The strong performance of the Indian private sector, as indicated by the increase in the Composite PMI, is likely to have a significant positive impact on the investment portfolio. The expansion in both the manufacturing and services sectors, along with the increase in new orders, foreign sales, and employment, suggest a robust economic environment in India. This could benefit the portfolio's exposure to the Indian market, such as the UAE and Kuwait markets, as well as the global exposure through the MSCI World and emerging markets positions. Additionally, the improved business sentiment could have a positive spillover effect on the overall market sentiment, potentially benefiting the portfolio's equity positions.
UK Private Business Activity Remains in Slight Expansion đ
The UK's private-sector activity remained in expansion territory in December 2024, with services offsetting a contraction in manufacturing, but new orders dropped for the first time in 13 months, job cuts accelerated, and business confidence fell to a two-year low.
The report indicates a slowdown in the UK's economic activity, with a drop in new orders and accelerated job cuts, which could negatively impact the performance of the portfolio's UK and European market exposures. The decline in business confidence also suggests potential challenges ahead, warranting a moderate negative impact assessment.
Euro Area Private Sector Activity Shrinks At Softer Pace âšī¸
The Eurozone's private sector activity contracted for the second consecutive month in December 2024, but the pace of decline eased, with the manufacturing sector remaining weak but the services sector rebounding into expansion territory.
The article indicates a mixed picture for the Eurozone economy, with the manufacturing sector remaining weak but the services sector rebounding. While the overall private sector activity contracted, the pace of decline eased, and the rest of the region saw solid output growth. This suggests a moderate impact on the investment portfolio, as the exposure to the Eurozone market and specific sectors like manufacturing and services may be affected, but the overall impact is not expected to be significant.
France Private Sector Continues to Struggle âšī¸
The HCOB France Composite PMI rose in December 2024, but the private sector remained in contraction, with manufacturing activity in severe contraction and the services sector failing to provide growth impetus.
The article indicates a mixed picture for the French economy, with the Composite PMI rising but still remaining in contractionary territory. While the services sector showed some improvement, manufacturing activity remained in severe contraction. This suggests a continued slowdown in the overall French economy, which could have a moderate negative impact on the investment portfolio, particularly the positions in the European market, CAC 40, and French companies like BNP Paribas and Societe Generale.
Germany Private Sector In Contraction for 6th Month âšī¸
The HCOB Flash Germany Composite PMI edged up in December 2024, indicating a sixth straight month of falling private sector activity, with the manufacturing downturn worsening and the services sector rebounding.
The article provides mixed signals about the German economy, with the Composite PMI edging up but still pointing to a contraction in private sector activity. The manufacturing sector continues to struggle, while the services sector has rebounded. However, the data suggests broad-based weakness in underlying demand, with new business inflows falling and inflationary pressures increasing. Additionally, firms remain concerned about political uncertainty, a sluggish economy, and troubles in the automotive sector, which could have a moderate impact on the investment portfolio.
Australia Private Sector Slightly Shrinks in December đ
The S&P Global Flash Australia PMI Composite Output Index fell to 49.9 in December 2024, indicating a slight decline in the Australian private sector, driven by a downturn in manufacturing production, softening growth in new orders, and declining export business.
The decline in the Australian PMI Composite Output Index suggests a slowdown in economic activity, which could negatively impact the performance of the investment portfolio, particularly the positions in the S&P 500, European market, and MSCI World, which have significant exposure to the Australian economy. The weaker conditions may also affect the performance of companies like BNP Paribas and Societe Generale, which have operations in Australia. However, the increased optimism among businesses could mitigate the overall negative impact on the portfolio.
UK Private Business Activity Remains at Slight Expansion âšī¸
The S&P Global UK Composite PMI remained unchanged at 50.5 in December 2024, with the services sector expanding and the manufacturing sector contracting, though new orders dropped for the first time in 13 months.
The unchanged PMI reading suggests a relatively stable economic environment in the UK, with the services sector offsetting the contraction in manufacturing. However, the drop in new orders raises some concerns about future consumer spending patterns, which could have a neutral impact on the overall investment portfolio.