Japan’s PMI Services was finalized at 51.6 in October, down from previous month’s 53.8. PMI Composite figure similarly declined to 50.5 from September’s 52.1.
Andrew Harker of S&P Global Market Intelligence highlighted the subdued performance: “While the PMI data continue to make positive reading for the Japanese service sector, the recent trends suggest that growth is on the wane.”
He elaborates that the slowdown is notably marked by the softest increases in activity and new orders witnessed since the year’s inception, which could herald a persistent deceleration as we edge closer to the year’s end.
This softening expansion has raised concerns regarding the service sector’s capacity to buoy the broader economy, particularly as manufacturing continues to lag. Harker notes the stagnation of new orders in October, halting an eight-month stretch of growth and presenting a cautionary backdrop for the upcoming months.