0.5 C
New York
Saturday, March 6, 2021

Japan’s September service sector activity shrinks at slowest pace since pandemic’s start

Must read

GameStop tale exposes regulatory paternalism and DeFi’s true value

Cryptocurrency23 minutes ago (Mar 06, 2021 01:20PM ET) ...

Paris police clear Seine riverside over lack of social distancing

World31 minutes ago (Mar 06, 2021 01:11PM ET) ...
imageEconomic Indicators39 minutes ago (Oct 04, 2020 09:05PM ET)

(C) Reuters. A woman walks past a luxury brand shop at a shopping district in Tokyo

TOKYO (Reuters) – Activity in Japan’s services sector contracted for the eight straight month in September but at the slowest pace since the coronavirus pandemic started wreaking havoc on the economy, a private business survey showed on Monday, in a sign that demand is starting to steady.

The final Jibun Bank Japan Services Purchasing Managers’ Index (PMI) rose to its highest in eight months, coming in at a seasonally adjusted 46.9 from 45.0 in the previous month.

The headline index, while still below the 50 neutral level, was higher than a preliminary reading of 45.6, suggesting conditions were moving closer to stabilisation.

“Overall, there are signs of improvement in the sector, however recovery is far from secure,” said Shreeya Patel, economist at IHS Markit, which compiles the survey.

“Demand across the country remains subdued, with tourism and travel restrictions impeding new work volumes across the service sector.”

The main reading was pulled down by an accelerated decline in new orders from abroad, with surveyed firms citing depressed demand conditions in export markets as well as the closure of clients’ businesses.

However, the survey also showed strong optimism in companies’ outlook for the 12 months ahead on hopes of a recovery in demand, pushing the business expectations sub-index to its highest level of the year.

While job shedding continued for a seventh month, the pace of staff cuts was more modest and neared a neutral level.

The results echo a key Bank of Japan survey from last week that showed business sentiment improved in the third quarter from a 11-year low hit three months earlier, in a sign of a gradual economic turnaround.

The composite PMI, which includes both manufacturing and services, rose to 46.6 in September from the previous month’s final of 45.2.

Japan’s September service sector activity shrinks at slowest pace since pandemic’s start

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

- Advertisement -

Latest article

GameStop tale exposes regulatory paternalism and DeFi’s true value

Cryptocurrency23 minutes ago (Mar 06, 2021 01:20PM ET) ...

Paris police clear Seine riverside over lack of social distancing

World31 minutes ago (Mar 06, 2021 01:11PM ET) ...

Swedish police break up coronavirus demonstration in Stockholm

Coronavirus32 minutes ago (Mar 06, 2021 01:11PM ET) ...