Jibun Bank - S&P Global / Markit final PMIs from Japan for October:
services 53.2
- preliminary was 53.0 and prior (September) was 52.2
composite 51.8
- prelim 51.7, prior 51.0
Comments from the report, inflation pressures noted (looks to me like the the conditions for a BOJ easing back on its loose policy are being met, I've been noting since last Friday's BOJ statement the comments being made on wage growth fuelling inflation)
- Survey respondents suggested that the latest improvement was primarily underpinned by the growth within the tourism industry and the subsequent strengthening in demand conditions. Restrictions on foreign tourism have now been lifted and the government’s recent launch of the Nationwide Travel Discount Programme has promoted domestic travel. As tourism volumes continue to increase in the coming months, we can hope to see continued improvement in the business conditions across Japan’s service sector.
- Firms too were optimistic for their future with the 12-month outlook for activity remaining strongly positive.
- inflationary pressures currently being faced by Japan’s service provider continued to present downside risks to the sectors potential growth. The near-record rate of input price inflation is soon likely to be mirrored in the prices charged by firms which could weaken demand conditions.
