Economic Buzz: Japan Services PMI Falls To 50.3 In November

5 Dec 2022 , 12:15 PM

The services sector in Japan continued to expand in November, albeit at a slower rate, the latest survey from Jibun Bank revealed on Monday with a PMI score of 50.3.Thats down from 53.2 in October, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the composite PMI fell into contraction at 48.9, down from 51.8 a month earlier. While a sustained improvement in pandemic-related conditions and the National Travel Discount Program continued to support an expansion in order book volumes in November, growth in activity levels was only marginal and was slower than in October. Concurrently, cost pressures across the sector remained acute. Input prices rose at a historically sharp pace and the rate of charged price inflation was among the strongest on record. Firms, however, were optimistic about the future amid hopes for stable market conditions and a sustained increase in tourist volumes. The downturn in the private sector was the first in three months and underpinned by sharp drops in output and new orders at manufacturing firms. In contrast, the Japanese services sector registered a third month whereby business activity improved.Powered by Commodity Insights