Japan’s PMI Services for April finalized at 54.3, slightly up from March’s 54.1. PMI Composite also saw an uptick, reaching 52.3, the highest level since August 2023.
According to Tim Moore, Economics Director at S&P Global Market Intelligence, April showcased “another strong month” for the service sector, driven by increasing business and consumer spending. This momentum resulted in the fastest upturn in business activity since August 2023. Despite challenges such as shortages of candidates hindering recruitment, positivity regarding the longer-term business outlook contributed to solid employment growth.
However, rising wage costs have emerged as a significant concern, leading to the sharpest increase in average cost burdens in eight months. Service providers are responding to elevated cost pressures by seeking higher prices from clients, with the latest survey indicating the fastest pace of price increases since the sales tax hike in April 2014.
