Japan - Jibun Bank Markit Services and Composite PMIs for June
Comment from Markit
- "The trend of manufacturing malaise and service sector resilience was once again apparent in Japan PMI data for June. That said, services activity growth moved sideways, with the respective index little-changed from April and May and matching its average for 2019 so far.
- "However, second quarter PMI readings in aggregate are indicative of the economy growing at approximately 0.3% annually. This would be a slowdown from the strength seen in the first quarter, but would corroborate with the underlying trends seen so far this year of subdued domestic consumption and struggling exports.
- "The next few months of PMI data will add further evidence as to whether the domestic economy in Japan is in the right shape to cope with Abe's planned consumption tax hike in the late Autumn.
These PMIs do not attract as much market attention as the manufacturing PMI.
Meanwhile, USD/JPY has managed to drop to a new session low, adding to its losses during US trade:
Yield on USTs are lower again today.
