Japan posts weak service activity in April
Japan saw a contraction in its services sector activity in April as coronavirus-related measures heavily dragged the country’s businesses. However, the drop came to be the slowest since the pandemic started in 2020.
The final au Jibun Bank Japan Services Purchasing Managers’ Index (PMI) recorded a seasonally adjusted reading of 49.5 in April. The figure came larger than the 48.3 reading in March, the slowest pace of decline in the current 15-month run of contractionary PMIs.
Survey components revealed firms’ dim outlook, with new and outstanding businesses still struggling as emergency measures restricted demand. But large-scale vaccinations were expected to fuel demand recovery, making businesses optimistic about their long-term outlook.