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The au Jibun Bank Japan Services PMI rose to 51.5 in December from 50.8 in November to extend the current sequence of rising business activity to 16 months. The expansion was only modest, however, and the second-weakest recorded in 2023.
However, the final number was revised lower in December 2023 from 52.0 in the preliminary figure.
December data highlighted a stronger improvement in business activity, as firms cited increased customer numbers across the Japanese services sector for the first time in four months.
New orders grew the most since September, supported by domestic demand. Foreign demand fell for the third straight month, albeit at a marginal pace.
The au Jibun Bank Japan Composite PMI was revised downward to 50.0 in December 2023 from a flash figure of 50.4. Still, the latest result was higher than November’s one-year low of 49.6, with faster service sector growth offsetting a further reduction in manufacturing production.
“Japanese service providers cited higher customer numbers as one of the key reasons for the increase, meaning that firms closed out the year in positive territory. Firms were also confident that this would lead to continued rises in activity, as indicated by a brighter degree of confidence in the 12-month outlook, which was supported by hopes of economic recovery and long-term business expansions,” said Usamah Bhatti, Economist at S&P Global Market Intelligence.
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