JEQ - Japan's service-sector grows at record pace in May
2023-06-05 01:55:24 ET
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The au Jibun Bank Japan Services PMI was at 55.9 in May 2023, compared to the preliminary reading of 56.3 and after a final 55.4 a month earlier.
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It was the ninth consecutive month of growth in the service sector and the fastest on record, amid recovery in overseas demand and a surge of foreign tourists as pandemic restrictions were eased further.
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The outstanding business grew the highest increase with foreign demand expanding at an unprecedented rate, largely attributed to the strength in inbound tourism.
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"Firms were buoyed by the easing of the few remaining pandemic restrictions and have noted strong increases in demand, notably from overseas and inbound tourism," said Usamah Bhatti, economist at S&P Global Market Intelligence.
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As a result, employment expanded at the second-fastest pace in the survey history, behind April 2019.
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On inflation, input cost inflation eased to the joint-softest recorded for 14 months.
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Meanwhile, output cost inflation rose at a softer rate for the first time since the start of the year.
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The composite PMI, which combines the manufacturing and services activity figures, expanded at the fastest pace since October 2013. The index advanced to 54.3 in May from 52.9 in April, staying above the break-even 50 mark for the fifth straight month.
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Japan's service-sector grows at record pace in May