JEQ - Japan Services PMI expands in December amid sharper growth in new business

2024-01-05 01:25:09 ET

The au Jibun Bank Japan Services PMI rose 51.5 in December from 50.8 in November to extend the current sequence of rising business activity to 16 months. The expansion was only modest, however, and the second-weakest recorded in 2023.

December data highlighted a stronger improvement in business activity, as firms cited increased customer numbers across the Japanese services sector for the first time in four months.

New orders grew the most since September, supported by domestic demand. Foreign demand fell for the third straight month, albeit at a marginal pace.

The au Jibun Bank Japan Composite PMI was revised downward to 50.0 in December 2023 from a flash figure of 50.4. Still, the latest result was higher than November's one-year low of 49.6, with faster service sector growth offsetting a further reduction in manufacturing production.

"Japanese service providers cited higher customer numbers as one of the key reasons for the increase, meaning that firms closed out the year in positive territory. Firms were also confident that this would lead to continued rises in activity, as indicated by a brighter degree of confidence in the 12-month outlook, which was supported by hopes of economic recovery and long-term business expansions," said Usamah Bhatti, Economist at S&P Global Market Intelligence.

ETFs: ( JEQ ), ( EWJ ), ( DXJ ), ( FXY ).

Currency: ( USD:JPY )

More on Japan economy:

• Japan's factory output dips in November; retail sales surpass expectations

• Japan's inflation rate continue to ease in November as food price hikes slow

• Summary of opinions: Members of BOJ called for debate on future exit from easy policy

• Bank of Japan maintains ultra-loose monetary policy; no change to dovish policy guidance

• Japan's core inflation up 2.9% missing forecast

For further details see: