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Services take up slack as trade slows
NEW YORK, A rebound in trade that helped world manufacturing growth beginning in 2009 has ended but that has been balanced by a growth in services, economic surveys show.
Surveys created by the Institute for Supply Management in the United States are not intended to show the level of business activity, but whether conditions are improving or worsening, The New York Times reported Friday.
While the manufacturing sector in many countries face the prospect of slower growth, service companies around the world indicated that growth in services, by contrast, had accelerated in many countries, including the United States.
"Global trade is starting to slow," said Chris Williamson, the chief economist of survey taker Markit.
Inventory rebuilding after the credit crisis eased led to extraordinary gains, he said, but that period is over.
"Companies are either deciding they have enough inventories, or they have grown a little more worried about the outlook and are not increasing orders," he said.
Service companies are seeing increases in domestic orders and solidly positive figures in that area in most countries indicate some resilience in economies even as the international trading surge subsides, analysts say.
NEW YORK, A rebound in trade that helped world manufacturing growth beginning in 2009 has ended but that has been balanced by a growth in services, economic surveys show.
Surveys created by the Institute for Supply Management in the United States are not intended to show the level of business activity, but whether conditions are improving or worsening, The New York Times reported Friday.
While the manufacturing sector in many countries face the prospect of slower growth, service companies around the world indicated that growth in services, by contrast, had accelerated in many countries, including the United States.
"Global trade is starting to slow," said Chris Williamson, the chief economist of survey taker Markit.
Inventory rebuilding after the credit crisis eased led to extraordinary gains, he said, but that period is over.
"Companies are either deciding they have enough inventories, or they have grown a little more worried about the outlook and are not increasing orders," he said.
Service companies are seeing increases in domestic orders and solidly positive figures in that area in most countries indicate some resilience in economies even as the international trading surge subsides, analysts say.
