Japan services sector loses steam in March as confidence eases, PMI shows
TOKYO, April 3 (Reuters) - Japan's service industry stagnated in March while broader private sector activity contracted at the fastest pace in more than two years, a business survey showed on Wednesday.
The service sector's slowdown is of particular concern to the world's fourth-largest economy, which counts on it to anchor growth and offset some of the drag from struggling manufacturing.
here.
The au Jibun Bank Japan Services Business Activity Index fell to the neutral level of 50.0 in March from a joint-six month high of 53.7 in February, better than a flash reading of 49.5, according to index publisher S&P Global Intelligence. The 50.0 threshold separates expansion from contraction.
"After a solid performance in the opening two months of the year, business activity across Japan's service sector stagnated in March as firms commented that market conditions had softened," said Annabel Fiddes, economics associate director at S&P Global Market Intelligence.
New order growth slowed for the second straight month to its weakest since last November, according to the survey. New export business continued expanding thanks to solid demand from mainland China and Taiwan, even though the pace eased from last month.
Business expectations for the year ahead were solid, but optimism softened to the lowest since January 2021, weighed by concerns about labour shortages, an aging population and global trade uncertainties, Fiddes said.
Japanese companies are worried President Donald Trump's blitz of tariffs against trading partners would trigger a broader global downturn.
Meanwhile, input price inflation climbed at the fastest pace in 19 months with respondents citing higher labour, raw material and fuel costs as well as exchange rates, the survey showed. Output prices eased to a five-month low.
The composite PMI, which combines manufacturing and service activity, fell to 48.9 in March from 52.0 in February, the first contraction since October.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
18 minutes ago
- Reuters
Israeli military says it will strike Beirut's southern suburbs
CAIRO, June 5 (Reuters) - The Israeli military on Thursday told residents of four neighborhoods in Beirut's southern suburbs to evacuate ahead of strikes on what it said were underground Hezbollah drone-manufacturing sites, and thousands fled. The evacuation warning, published on X, was the first such warning in over a month for the suburbs, which were hit hard in the year-long war that ended in a ceasefire in November. Residents rushed to leave the area, causing traffic gridlock. "Despite the understandings between Israel and Lebanon, the IDF has identified that the Hezbollah aerial unit is operating to produce thousands of UAVs, with the direction and funding of Iranian terrorists," the army added in a statement, using acronyms for the Israel Defense Forces and drones. There was no immediate comment from Hezbollah. A U.S.-brokered truce in November halted the fighting between the Iran-backed Hezbollah and Israel. Each side accuses the other of not entirely living up to its terms, and the ceasefire has looked shaky in recent months.
Reuters
19 minutes ago
- Reuters
Drillers, unions urge US senators to preserve hydrogen credit
WASHINGTON, June 5 (Reuters) - A coalition of nearly 250 companies and business and labor groups on Thursday urged top U.S. Republican senators to preserve a credit for the emerging hydrogen fuel industry as they hash out President Donald Trump's tax and spending bill. Oil and gas lobbying group the American Petroleum Institute, a local unit of the International Brotherhood of Electrical Workers, and DuPont (DD.N), opens new tab urged Senate Majority Leader John Thune and Senator Mike Crapo to extend the construction deadline to December 31, 2029 for hydrogen projects to receive a tax break. The Senate is debating its version of the bill after the House of Representatives terminated the so-called 45V credit for any project which begins construction after the last day of 2025. "If this course of action is adopted by the Senate, it will drive tens of billions of dollars in planned private sector investments out of the United States and into other countries," the groups said in a letter to the senators, dated June 5. "Failing to act now by preserving 45V means ceding the future of hydrogen to China." The Business Council for Sustainable Energy and the Nuclear Hydrogen Initiative also signed the letter. House Republicans slashed the credits which had been included the Inflation Reduction Act, the landmark climate legislation signed by former President Joe Biden, a Democrat. Under the IRA, hydrogen producers got tax credits for projects that began construction before 2033. Industry analysts say clean hydrogen, opens new tab, or hydrogen produced from non-fossil energy sources, or natural gas paired with technology to capture carbon emissions and store them underground, is needed to decarbonize heavy industry and some vehicles. The letter said clarity from lawmakers would spur tens of billions of dollars in private capital, boost domestic manufacturing, and create long-term employment in construction, operations, and technology.
Reuters
24 minutes ago
- Reuters
Real Madrid agree deal for River Plate teenager Mastantuono
BUENOS AIRES, June 5 (Reuters) - Real Madrid have agreed to sign River Plate's young forward Franco Mastantuono for an initial fee of about $45 million, a spokesman for the Argentine club told Reuters on Thursday. The 17-year-old Mastantuono made his debut for River in January 2024 and is widely regarded by the local media as the latest prodigy to emerge from Argentine football. A talented left-footed finisher, he established himself as a starter under coach Marcelo Gallardo and soon became a key part of the Buenos Aires-based team. "The sale is settled, in the final talks it remains to agree on some details," a club source told Reuters, who gave no further information about the transfer. Mastantuono had been linked to other big European clubs such as Manchester United and Paris St Germain after attracting attention with a stunning free kick in River Plate's Superclasico win over Boca Juniors in April. River intend to keep the attacking midfielder on loan at the club until December to complete their Copa Libertadores campaign, according to local press reports. Argentina manager Lionel Scaloni recently called up Mastantuono for the first time for matches against Chile and Colombia in the South American qualifiers. He could become the youngest player to make his senior debut for Argentina.
