Trade Desk Thoughts - Tertiary Industry Activity Index

Tertiary Industry Activity Index Actual 1.2%, Expected 0.4%, Previous -0.8%

Release Explanation: This report evaluates the monthly change in output that is produced by Japans service sector. Japans economy is weighs heavily on exports and because this report excludes manufacturing and only measures the services industries it is a key indicator of domestic activity. The data is collected from wholesale and retail trade, financial services, health care, real estate, leisure, and utilities. Strong spending in the services sector usually translates to higher employment rates, and can also be a sign of strong consumer spending now and in the future.

Trade Desk Thoughts: Japans tertiary industry activity index increase to 1.2 percent for July. Industries that contributed for the increases were, wholesale and retail trade, electricity, gas, heat supply, and water. As well as medical and health care, and transport. Industries that saw a decrease were information and communications, finance and insurance, real estate, learning support, and restaurants.

Forex technical Reaction: The Japanese yen has weakened shortly after the index was released.

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