Latest news with #JapanServicesBusinessActivityIndex
Reuters
03-04-2025
- Business
- Reuters
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.
Reuters
05-03-2025
- Business
- Reuters
Japan's service activity marks fastest growth in six months, PMI shows
TOKYO, March 5 (Reuters) - Japan's service activity marked the fastest growth in six months in February, backed by strong sales and new export businesses, a private-sector survey showed on Wednesday. The service sector has been the driving force behind the country's recent economic growth, helping offset the drag in manufacturing caused by weak global demand. The au Jibun Bank Japan Services Business Activity Index rose to 53.7 in February from 53.0 in January, the survey compiled by S&P Global Market Intelligence showed. It was better than a flash reading of 53.1 and stayed above the 50.0 threshold separating expansion from contraction for the fourth consecutive month. "The performance of the Japanese service sector improved further in February," said Usamah Bhatti, economist at S&P Global Market Intelligence. New businesses kept growing albeit at a slightly slower pace, the survey showed. New export business marked the strongest growth since last May lifted by high demand from Taiwan and Vietnam. While businesses were confident that growth momentum would be sustained thanks to improving employment and backlogs, Bhatti said overall optimism weakened over labour shortages. Input cost inflation eased from January but remained high due to increased labour, fuel and raw material costs, the survey showed. Inflation of charged prices also slowed to a four-month low. The au Jibun Bank flash Japan composite PMI, which combines both manufacturing and service sector activity, expanded to 52.0 in February to 51.1 in January. Overall confidence in the future performance of the private sector as a whole, though, rose at the slowest pace since January 2021 due to labour shortages and U.S. trade policy concerns, Bhatti at S&P Global Market Intelligence said. Make sense of global markets with the Trading Day newsletter. Sign up here.
