S&P Global reports Japan services PMI eases to 51.3 in September
by@Reuters
Summary
Japan's service sector activity slowed in September, with the S&P Global Services Purchasing Managers' Index (PMI) declining to 51.3 from a five-month high of 52.5 in August. This drop reflects slower increases in business activity and new orders, despite new orders rising for the 27th consecutive month. The decline in export business marked the second-sharpest rate since January 2021, although stronger domestic demand continued to bolster services. In a mixed economic outlook, the Bank of Japan's recent tankan survey indicated that while manufacturers' confidence hit an eight-year high, non-manufacturers' sentiment deteriorated, emphasizing the divergent trends within Japan's economy.
Analysis
S&P Global: S&P Global is a leading provider of credit ratings, benchmarks, analytics, and data services to financial markets and institutions worldwide. It produces key economic indicators including purchasing managers' indices that track activity across sectors and regions. In this news, S&P Global released the final Japan Services PMI data indicating a slowdown in the sector's expansion. Annabel Fiddes: Annabel Fiddes serves as Economics Associate Director at S&P Global Market Intelligence, where she analyzes and comments on global economic survey data. She provided analysis on the softer expansion signals in Japan's service sector for this report. Her insights highlight trends in business activity and new orders based on the latest PMI results. Japan Services Purchasing Managers' Index: The Japan Services Purchasing Managers' Index is a monthly economic indicator compiled by S&P Global to measure the health of Japan's service sector through surveys of purchasing managers. It covers factors such as business activity, new orders, employment, and costs. The news centers on its September reading showing eased growth from the prior month. Sector Trends: Stronger domestic demand continued to support sales in services even as new export business declined. Economic Survey: The Bank of Japan's quarterly tankan survey released the same week showed Japanese manufacturers' confidence at an eight-year high while non-manufacturers' sentiment weakened.
Categories
macro