More PMIs from Japan, on the up!
Key points from Markit/Nikkei
- Output at Japanese services firms increases at sharpest rate since January
- New orders at services companies rise at rate little-changed from October's eight-month high
- Input price inflation in the service sector accelerates to near two-year high
Comments from Amy Brownbill, economist at IHS Markit, which compiles the survey:
- Business activity growth at Japanese services firms rose at the sharpest rate since January midway through the final quarter of 2016.
- Expansions in both the manufacturing and service sector suggests that GDP growth in the final quarter of 2016 will pick up.
- This is also backed by IHS Markit's GDP forecast of 1.0% y/y in Q4 (the highest reading since Q3 2015)
- However, services firms still remained cautious towards taking on additional staff, with employment remaining in negative territory
- Services companies also suffered from greater cost burdens, with input prices rising at the sharpest rate in nearly two years, linked in part to greater raw material costs and fuel expenses