Japan June Services PMI 49.4 (prior 53.8)

Japan June Services PMI 49.4, first contraction for nearly two years

• flash 49.8, prior 53.8

Composite 49.7

• flash was 50.0 prior 52.6

Earlier:

• Japan final manufacturing PMI for June 50.0 (prior 50.4)

Commentary from the report:

• The Japanese service sector's recent strong upturn in business activity ended abruptly in June
• Business Activity Index fell by 4.4 points during the month, the largest downward movement since January 2022 and among the biggest on record
• Looking beyond the headline figure, the picture is less concerning. Although the new business index also fell steeply since May, it merely signalled a pause in new business growth as opposed to an outright decline in demand. This was partly explained by the weak yen continuing to boost international new business. Moreover, the 12-month outlook and pace of job creation both remained relatively strong.