S&P Global: Japan’s service sector ends 4m growth streak in Oct. ’24

Japan’s services sector contracted in October 2024, marking the first decline in four months, according to the latest au Jibun Bank Flash Japan Services PMI released by S&P Global on Thursday.

The Services Business Activity Index dropped from a final reading of 53.1 in September to 49.3 in October 2024, indicating a stronger decline in business activity compared to the previous month.

Service providers attributed the contraction to economic weakness both domestically and internationally, leading clients to hold back on new orders, according to S&P recent report.

New business slightly decreased, but employment levels stayed stable as firms had enough capacity to handle current workloads. Input cost inflation increased in October, but firms raised prices at the slowest rate in 11 months to boost sales.

However, confidence levels also eased sharply in October, with firms expressing concerns about stagnant demand and labour shortages hindering services output over the next 12 months.

Attribution: S&P Global report

Subediting: Y.Yasser