Key facts
- India's services sector growth slowed to a 17-month low in June.
- India's new business growth in the services sector was at its slowest rate in over two-and-a-half years.
- France's services sector contracted faster than forecast in June.
- Britain's services sector contracted for the second consecutive month in June.
- Britain's services sector reached its weakest point since January 2023.
- New business in Britain's services sector fell at the fastest pace since November 2022.
- Kenya's private sector activity contracted for the second consecutive month in June.
- Kenya's Stanbic PMI fell to 48.6 in June.
- EU-US goods trade reached a record €875 billion last year.
- The automotive sector has suffered damage due to tariffs and competition.
Global economic activity in the services sector experienced a slowdown in June. India's services sector expanded at its slowest pace in 17 months, as indicated by the HSBC India Services PMI. This deceleration was attributed to a sharp weakening in domestic demand and the slowest rate of new business growth in over two-and-a-half years.
In Europe, France's services sector contracted at a faster pace than initially forecast during June. Similarly, Britain's services sector experienced a contraction for the second consecutive month, reaching its weakest point since January 2023. New business in Britain's services sector fell at the fastest rate since November 2022, with companies citing political uncertainty, inflation, and the Middle East conflict as primary concerns.
Kenya's private sector activity also contracted for the second consecutive month in June. The Stanbic PMI for Kenya registered at 48.6, reflecting a decline in overall business activity. Key factors contributing to this downturn included declining customer demand, ongoing protests, and broader economic challenges within the country.
In contrast to the services sector trends, goods trade between the European Union and the United States reached a record high of €875 billion last year. However, a study by the German Economic Institute highlighted that specific sectors, such as the automotive industry, have suffered significant damage due to tariff pressures and increased competition. This suggests a divergence between overall trade volume and the health of individual industries within the EU-US economic relationship.