Tuesday, 19 October, 2021
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Japan’s service sector activity shrinks at faster pace in July: PMI

Japan’s service sector activity shrinks at faster pace in July: PMI

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TOKYO: Japan’s services sector activity shrank at a faster pace in July to contract for the 18th consecutive month as curbs rolled out to combat a resurgence in coronavirus infections dealt a blow to business activity and confidence.

Activity and new business inflows contracted at a faster pace as the spread of the coronavirus undermined the world’s third-largest economy’s recovery prospects by hurting both confidence and sales, report agencies.

The final au Jibun Bank Japan Services Purchasing Managers’Index (PMI) dropped to a seasonally adjusted 47.4 from the previous month’s final 48.0 level, and compared with a 46.4 flash reading.

The reading marked the 18th month that services activity came in below the 50.0 threshold that separates contraction from expansion, the longest such streak since a 27-month run through March 2010. “The Japanese services economy signalled that demand conditions remained subdued,” said Usamah Bhatti, economist at IHS Markit, which compiles the survey.