Last week we had the manufacturing PMI from Japan:
Japan July Manufacturing PMI (final): 49.1 (prior 50.0)
Now the services and composite PMIs:
Services 53.7
- prior 49.4
Composite 52.5
- prior 49.7
The preliminary for all three is here:
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The latest Jibun Bank Japan Services PMI indicates a robust return to growth in Japan's service sector for July, with the Business Activity Index rising to 53.7, a significant recovery from June's dip at 49.4. This surge is driven by stronger domestic demand, although foreign demand has seen a marked decline, the sharpest since June 2022.
Key highlights include a solid increase in new business volumes, particularly from domestic clients, and a notable rise in outstanding business and employment levels. Despite persistent inflationary pressures, firms have been successful in passing on increased costs to customers, maintaining strong business confidence.
The composite PMI, which includes both services and manufacturing, climbed to 52.5, supported primarily by the services sector's expansion. However, manufacturing saw a slight contraction, indicating a mixed performance across the private sector.
Some encouragement from this report for Japanese authorities.
