Akintunde Oyedokun
Research Analyst
Oil prices rose on Thursday as U.S. strikes and renewed Israeli threats against Iran heightened concerns over Middle East supply disruptions.
Brent gained 0.62% to $96.22 a barrel, while WTI rose 0.86% to $91.79.
Fewer vessels also transited the Strait of Hormuz, adding to concerns over supply flows. Higher oil prices are meanwhile increasing inflation risks and expectations of a possible U.S. rate hike.
Canada Services Sector Contracts at Six-Month Low
Canada’s services sector contracted at its fastest pace in six months in August as U.S. trade tensions and geopolitical uncertainty weakened demand.
The S&P Global Services PMI fell to 46.8 from 49.1 in July, while new business dropped to 46.1, its lowest since January.
The Composite PMI also declined to 47.8, although manufacturing remained in expansion at 53.0.
France’s Services Sector Contracts in August
France’s services sector contracted further in August, with the PMI falling to 48.0 from 49.6, as weak demand and extreme heat weighed on activity. The broader composite PMI also fell to 48.5, signalling continued economic weakness. Employment declined for a fourth straight month, while price pressures picked up.
Kenya Private Sector Contracts in August
Kenya’s private sector contracted in August for the first time in three months, with the Stanbic PMI falling to 49.7 from 51.3 in July.
Higher costs, supply constraints and tight cash flow weighed on output, while inflation rose slightly to 6.6%. The government expects economic growth of 5.0% this year.
Nigeria’s Economic Activity Expands in August
Nigeria’s economic activity expanded for the third straight month in August, with the Composite PMI rising to 52.7 points from 51.1 in July, according to the CBN.
Growth was led by Services and Agriculture, while Industry returned to expansion at 50.6 points. Agriculture remained the strongest sector at 53.4 points, extending its growth streak to 25 months.
