A bit of July 4 data … markets a bit snoozy right now
Rises for both the services and composite PMI indexes in june June from may
Joe Hayes, Economist at IHS Markit:
- Growth in Japan's crucial service sector was sustained during June. That said, PMI data poses the question as to whether the business cycle has finally plateaued in Japan. The latest survey indicates that output has expanded at a broadly similar pace over Q2 as that seen across Q1, therefore suggesting the likelihood of another disappointing GDP number.
- However, weak client demand seen in May was reversed during the latest survey. This should support business activity, at least in the short-term. That said, with employment growth having slowed in each of the past three months, the potential for firms to meet any further upswing in demand could be impacted by staff shortages and skills mismatches.
more to come
