Japan’s service sector activity contracts for 17th month

6 July, 2021 12:00 AM printer

TOKYO: Japan’s services sector activity shrank for the 17th straight month in June as the coronavirus dampened demand at home and abroad, underscoring sluggish momentum for the world’s third-largest economy.

The decline in the services industry kept overall private-sector activity in contraction for a second month, in a sign the country’s economic recovery struggles to pick up despite making progress with a coronavirus vaccine rollout, report agencies.

The final au Jibun Bank Japan Services Purchasing Managers’Index (PMI) was at a seasonally adjusted 48.0, up from the prior month’s final level of 46.5 and a 47.2 flash reading.

It meant services activity came in below the 50.0 threshold that separates contraction from expansion for a 17th month, the longest such streak since a 27-month run through March 2010.

The PMI survey showed firms saw a slower contraction in new business, including from overseas, and grew increasingly bullish about expectations for the year ahead.