RIYADH/CAIRO: The US private sector experienced the slowest growth in a year as its composite Purchase Managers’ Index reached 55 in September. Labor shortages and smaller increases in manufacturing and services demand were responsible for the weaker growth. The euro zone’s composite PMI was recorded at 56.2, also reflecting the slowest growth in the private sector in 5 months. While orders and employment slightly expanded, shortfalls in inputs hindered the manufacturing and services output. Moreover, the UK PMI stood at 54.9, indicating a nominal rise compared to previous months. This was largely due to slower manufacturing growth. Australia’s IHS Markit Composite PMI has continued its contractionary trend, standing at 46.5 in September. The indicator has been achieving below-50 readings for the previous three months now. Similarly, the au Jibun Bank Japan Composite PMI showed that both manufacturing and services sectors experienced a slowdown in terms of output in September. In addition, the Russian private sector only marginally grew in September as the country’s PMI reached 50.5 in September. A more positive outlook is the case for India as its composite PMI showed positive growth, reaching 55.3 in September. This was stimulated by increases in aggregate business activity and new work intakes. Trade news US trade deficit hits a record level of $73.3 billion in August as imports reach an all-time high of $287 billion, according to data published by the Bureau of Economic Analysis. Exports only slightly increased by 0.5 percent month-on-month, amounting to $213.7 billion. The trade deficit with China widened further as it increased by $3.1 billion in August to stand at $28.1 billion at the end of the month. On the other hand, Canada’s trade surplus rose to CAD 1.94 billion in August, according to Statistics Canada, as exports increased by 0.8 percent and imports fell by 1.4 percent. Similarly, Australia’s trade surplus reached another record high of AUD 15.08 billion in August, the Australian Bureau of Statistics reported. This was driven by an impressive MoM growth in exports valued at 4 percent. American manufacturing Despite shortages in raw materials and labor, US factory orders grew in August by 1.2 percent, the Commerce Department said. This comes at a time when economic growth seems to have slowed down in the third quarter but the manufacturing sector continues to demonstrate strength. China’s private sector US study shows that China needs stronger private sector participation “to maintain a growth potential that exceeds 3 percent annually by the middle of this decade.” The Atlantic Council and consultancy Rhodium Group also added that China needs more two-way flow cross-border investments. Italy’s budget deficit The Italian National Institute of Statistics reported on Tuesday that the public budget deficit shrank to 10.2 percent of GDP in the first half of the year, a 1.6 percentage point difference from the 11.8 percent recorded in the same period last year.