Services and Composite PMIs from Japan
- Japan’s services sector continued to expand in August, though at a slightly slower pace, with the S&P Global Services PMI easing to 53.1 from 53.6 in July.
- The services sector’s resilience offset manufacturing weakness, lifting the composite PMI to 52.0, the strongest since February.
From the report, in summary:
- Domestic demand remained strong, driving the fastest rise in new orders since February, but foreign demand contracted at its sharpest rate in more than three years.
- Employment fell for the first time since September 2023 as firms cited staff resignations, pushing backlogs to a two-year high.
- Input costs climbed again, squeezing margins as competitive pressures limited firms’ ability to pass on higher prices.
- Still, business confidence improved on expectations of stronger demand and planned expansions.
