Overview
- Friday's PMI releases for June revealed a split picture where some economies posted solid expansion while others showed clear weakening or contraction.
- China's services PMI eased slightly to 54.1 but services export orders rose to a 20-month high, employment ticked up for a second month and firms regained some pricing power.
- India's services PMI fell to a 17-month low of 57.4 as domestic demand cooled and hiring nearly stalled, even though export orders provided a partial offset and input-cost inflation eased.
- The UAE's non-oil PMI slipped to 50.8, its weakest in five years with employment contracting for the first time in over four years because of regional war spillovers, and Russia's services PMI fell to 48.2 with five months of job losses.
- Across surveys input-cost inflation moderated in many countries, export demand and semiconductor/AI-led manufacturing orders are supporting activity, and firms and policymakers now face trade-offs between containing price pressures and shoring up fragile home-market growth.