Latest news with #JibunBankJapanServices
The Star
5 days ago
- Business
- The Star
Japan's services sector growth slows in May on weaker demand
New business growth in the service sector eased to its slowest pace since November. — Reuters TOKYO: Growth in Japan's service-sector activity slowed in May on weaker demand, offering little to mitigate falling factory activity and resulting in a near-zero growth for business overall, a private-sector survey shows. The final au Jibun Bank Japan Services purchasing managers' index (PMI) fell to 51 in May from 52.4 in April. An index reading above 50 indicates growth and a reading below indicates contraction. New business growth in the service sector eased to its slowest pace since November, while employment growth in services was the weakest rate since December 2023, the survey showed. Service-sector managers' confidence in their future outlook improved to a three-month high in May from April's four-year low, but the overall level stayed weaker than the post-pandemic average, according to the survey. 'Concerns over the outlook often stem from uncertainty over future global demand, as well as labour shortages and rising costs,' said Annabel Fiddes, economics associate director at S&P Global Market Intelligence, which compiled the survey. 'The latter was highlighted by a further steep increase in input prices, to suggest that official inflation data will remain strong.' — Reuters
Business Recorder
6 days ago
- Business
- Business Recorder
Japan's service sector growth slows in May, PMI shows
TOKYO: Growth in Japan's service-sector activity slowed in May on weaker demand, offering little to mitigate falling factory activity and resulting in a near-zero growth for business overall, a private sector survey showed on Wednesday. The final au Jibun Bank Japan Services purchasing managers' index (PMI) fell to 51.0 in May from 52.4 in April, although it was higher than flash 50.8. An index reading above the 50.0 threshold indicates growth and a reading below indicates contraction. New business growth in the service sector eased to its slowest pace since November, while employment growth in services was the weakest rate since December 2023, the survey showed. Service-sector managers' confidence in their future outlook improved to a three-month high in May from April's four-year low, but the overall level stayed weaker than the post-pandemic average, according to the survey. 'Concerns over the outlook often stemmed from uncertainty over future global demand, as well as labour shortages and rising costs,' said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. 'The latter was highlighted by a further steep increase in input prices, to suggest that official inflation data will remain strong.' Japan's service activity expands on solid demand, PMI shows Input price inflation eased from April's 26-month high but remained elevated, with managers citing higher costs for energy, labour and transport, prompting service providers to continue raising their output charges roughly in line with April's pace. The slowdown in services, combined with a continued decrease in manufacturing, left overall private sector activity stagnant with the composite PMI dropping to 50.2 in May from 51.2 in April. 'The weaker demand picture suggests that the private sector may struggle to bounce back in the near-term, and could translate into more cautious staff hiring in the months ahead,' Fiddes said.
New Straits Times
6 days ago
- Business
- New Straits Times
Japan's service sector growth slows in May, PMI shows
TOKYO: Growth in Japan's service-sector activity slowed in May on weaker demand, offering little to mitigate falling factory activity and resulting in a near-zero growth for business overall, a private sector survey showed on Wednesday. The final au Jibun Bank Japan Services purchasing managers' index (PMI) fell to 51.0 in May from 52.4 in April, although it was higher than flash 50.8. An index reading above the 50.0 threshold indicates growth and a reading below indicates contraction. New business growth in the service sector eased to its slowest pace since November, while employment growth in services was the weakest rate since December 2023, the survey showed. Service-sector managers' confidence in their future outlook improved to a three-month high in May from April's four-year low, but the overall level stayed weaker than the post-pandemic average, according to the survey. "Concerns over the outlook often stemmed from uncertainty over future global demand, as well as labour shortages and rising costs," said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. "The latter was highlighted by a further steep increase in input prices, to suggest that official inflation data will remain strong." Input price inflation eased from April's 26-month high but remained elevated, with managers citing higher costs for energy, labour and transport, prompting service providers to continue raising their output charges roughly in line with April's pace. The slowdown in services, combined with a continued decrease in manufacturing, left overall private sector activity stagnant with the composite PMI dropping to 50.2 in May from 51.2 in April. "The weaker demand picture suggests that the private sector may struggle to bounce back in the near-term, and could translate into more cautious staff hiring in the months ahead," Fiddes said.
Business Times
07-05-2025
- Business
- Business Times
Japan's service sector activity rebounds in April, PMI shows
[TOKYO] Japan's service sector activity returned to growth in April after stagnating the previous month, helped by improved orders, a stark contrast to continued weakness in manufacturing, a business survey showed on Wednesday. The final au Jibun Bank Japan Services purchasing managers' index (PMI) rose to 52.4 in April from the neutral 50.0 level in March. The figure also overshot the flash reading of 52.2. A reading above 50.0 signals growth in activity, while a figure below that level points to contraction. The data showed 'a fresh increase in service sector activity offset a further decline in factory production in April, to help lift overall private sector output in Japan back into expansion territory,' said Annabel Fiddes, economics associate director at S&P Global Market Intelligence, which compiled the survey. The rebound in service activities helped lift the composite PMI, which combines manufacturing and service sectors, to 51.2 in April from 48.9 in March, surfacing above the 50-line for the first time in two months. New business in the service sector grew at the fastest pace since May last year, with companies pointing to improved demand. This contrasted with manufacturers, who saw the steepest drop in new orders since February amid US tariff worries. Despite the upturn in activity, business confidence among service providers weakened for the third consecutive month, falling to its lowest level since January 2021, suggesting the concerns over tariffs on the global economy are broadly shared by Japanese companies. Input cost inflation accelerated sharply to a 26-month high, with companies reporting higher prices for raw materials, fuel and labour, prompting firms to raise their output charges to maintain margins. Employment in the service sector increased for the 19th straight month, with the pace of job creation accelerating slightly to a three-month high as companies sought to expand capacity in line with customer demand. REUTERS
