Japan’s service sector activity grows at fastest pace in 6 months


The final index at the Jibun Bank Japan Services Purchasing Managers’ Index (PMI) rose to 52.6, seasonally adjusted, from 50.7 the previous month, with activity well above the 50 mark which separates contraction from expansion.

This figure marks the fastest rate of expansion since November 2021 and is better than the seasonally adjusted flash reading of 51.7.

“Activity over the next few months looks solid as pending deal levels have increased at the highest rate since September 2019,” said Usamah Bhatti, economist at S&P Global Market Intelligence, which compiles the report. investigation.

“That said, rising prices remained a slight drag on demand, as the cost burden increased at a record pace.”

Companies in the sector saw overall input prices rise for the 18th consecutive month, citing a wide range of factors such as rising fuel and raw material costs.

Input price pressures lead them to charge more for their services, partially passing on the higher cost to consumers, according to the survey.

The composite PMI, which is calculated from manufacturing and services, rose to 52.3 from April’s final of 51.1 to mark the fastest pace of expansion in five months.

After a contraction in January-March, the world’s third-largest economy is expected to rebound this quarter, with annualized growth of 4.5%, as the pandemic’s effect on consumer sentiment fades.

The economy still faces risks from higher food prices and a wider range of consumer products, which could reduce household spending, and disruptions in the supply of spare parts and chips. of high technology, which harm manufacturers.



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