S&P Global: Japan’s service sector PMI expands in Dec. ’24

Japan’s service sector expanded in December 2024, with the au Jibun Bank Japan Services PMI rising to 51.4 from 50.5 in November, indicating a stronger growth rate for the second month in a row.

The au Jibun Bank Japan Services PMI is based on a survey of around 400 service sector companies in Japan. It covers various sectors such as consumer, transport, information, communication, finance, insurance, real estate, and business services.

Services activity increased for the second consecutive month at a faster pace, driven by a rise in new business inflows. To meet the growing demand, service providers hired more staff and managed outstanding business effectively.

Despite above-average optimism in December, concerns about labour shortages and rising costs tempered the overall outlook. Input costs rose sharply, leading to the highest increase in average selling prices in eight months.

Attribution: S&P Global report