Japon - PMI Services

The Jibun Bank Japan Services PMI rose to 50.6 in December 2019 from 50.3 in the previous month, signalling back-to-back months of growth in output as business activity recovers following the sale tax hike and typhoon in October. New business and employment increased at the fastest pace in six months, while backlogs of work declined. On the price front, output prices decreased, while input price inflation eased. Lastly, sentiment weakened but remained positive.

The Jibun Bank Japan Services PMI was revised lower to 50.3 in November 2019 from a preliminary estimate of 50.4, and compared to October's final of 49.7. The latest reading pointed to an expansion in the services sector, after shrinking in the previous month, as new orders increased slightly and the job creation rate accelerated to a five-month high. Also, both new export orders and outstanding business were broadly unchanged despite reports of operational difficulties in the aftermath of the typhoon. On the price front, input cost inflation picked up; while output price inflation eased. Lastly, sentiment strengthened to a five-month high, boosted by improvements in demand outlook, tailwinds from the Tokyo Olympics and new customer gains.

The Jibun Bank Japan Services PMI rose to 50.4 in November 2019 from 49.7 in the previous month, pointing to a rebound in service sector output, a preliminary estimate showed. New order growth accelerated, while both overseas sales and employment increased at softer pace. On the price front, output prices rose less, while input cost inflation picked up. Lastly, sentiment improved.

The Jibun Bank Japan Services PMI was at 49.7 in October 2019, lower than the flash figure of 50.3 and compared to a final 52.8 in September. This marked the first contraction in the service sector since June 2016 on the back of consumption tax rise and disruptions from the typhoon. New order growth eased to a 17-month low, while the rate of job creation was mild and little-changed from September. Meantime, new export orders rose for the fourth month in a row, with firms linking growth to the Rugby World Cup. On the price front, inflationary pressure stepped up noticeably, with input price inflation hitting its highest in seven months, while output prices increased strongly and at the steepest pace since April 2014, which was when the consumption tax also rose. Finally, sentiment was upbeat and was above the historical average, amid plans to hire new staff and investment.

The Jibun Bank Japan Services PMI declined to 50.3 in October 2019, the lowest since September last year, from 52.8 in the prior month, a flash data showed. Output, new export orders and employment all expanded at softer rates while new orders rose at the quickest pace in four months. In terms of prices, both input price inflation and output charge inflation strengthened, following the sales tax hike. Finally, business confidence weakened but remained positive.

The Jibun Bank Japan Services PMI was confirmed at 52.8 in September 2019, down from August's 22-month peak of 53.3. New orders climbed, boosted by the fastest increase in new export sales since July 2018, while employment growth was only slightly faster than August's one-and-a-half-year low. On the price front, input costs accelerated, as expenses were driven by higher shipping, labour and rent costs. Looking ahead, confidence strengthened to a three-month high, lifted by expansion plans and forecasts of stronger demand. Nonetheless, a number of firms expect the sales tax hike to have an adverse impact on the economy.