Japan’s services PMI hits 49.4 in June, first contraction in nearly two years
- Flash 49.8, before 53.8
Compound 49.7
- Flash was 50.0 before 52.6
previously:
- Japan Final Manufacturing PMI for June 50.0 (Previously 50.4)
Comment on the report:
- The recent strong surge in business activity in Japan’s services sector came to an abrupt end in June.
- The business activity index fell by 4.4 points during the month, the largest decline since January 2022 and among the largest declines on record.
- Looking beyond the headline number, the picture is less alarming. While the new business index fell sharply since May, it was more of a sign of stalled new business growth, rather than an outright drop in demand. This was partly explained by the continued weakness of the yen in boosting international new business. Moreover, the 12-month outlook and the pace of job creation remained relatively strong.
This article was written by Eamonn Sheridan on www.forexlive.com.