Economic Buzz: Japan Services Sector Falls Into Contraction

5 Sep 2022 , 11:18 AM

The services sector fell into contraction territory in August, the latest survey from Jibun Bank revealed, with a services PMI score of 49.5. Thats down from 50.3 in June and it moves beneath the boom-or-bust line of 50 that separates expansion from contraction. New business from abroad was little changed from the levels seen in July. The weaker overall demand environment and concerns over the latest pandemic wave pushed business confidence down to a three-month low, while firms became more cautious around hiring as staff numbers were broadly unchanged. The survey showed that the composite index fell to 49.4 in July from 50.2 in June. The latest data signaled a renewed fall in private sector output, thereby ending a five-month sequence of growth. The overall contraction stemmed from weakness at both manufacturing and service sector firms. Powered by Commodity Insights