Services PMI results tend to not cause to0 much of a ripple in the Matrix, despite services being a big, big part of the economy
Markit says the 'key points"
- Employment growth accelerates …
- … but output and new business rise at softer rates
- Price pressures intensify
(I thought it was just me liked the … , apparently not!)
Joe Hayes, Economist at IHS Markit, which compiles the survey:
- "In general, the signal from the July survey was the status quo - business conditions in Japan's service sector are continuing to improve at a fairly mild pace. Business activity has risen in successive months for almost two years, although the latest reading on the headline figure points to a relatively weak rate of expansion.
- Nonetheless, demand conditions improved to an extent which generated capacity pressures, with panellists pointing to a rise in outstanding business. In turn, this should support further output growth in the coming months. Further positivity can be drawn from the fact that employment growth accelerated to a four-month high, despite reports of rising wage pressures. A stronger degree of business confidence, in tandem with the quickest rate of output price inflation for 50 months, reaffirms the upbeat signal from these forward looking indicators.
