TOKYO (Reuters) – Activity in Japan’s services sector expanded at a slightly faster pace in June than the previous month, a business survey showed on Wednesday, suggesting domestic demand remains resilient despite growing pressure on the country’s export sector.
The Jibun Bank Japan Services Purchasing Managers’ Index (PMI) edged up to 51.9 from 51.7 in May on a seasonally adjusted basis, pointing to the fastest expansion in three months.
Index - Threshold - Contraction - Expansion - Month
The index stayed above the 50 threshold that separates contraction from expansion for the 33rd straight month.
Survey respondents reported improved domestic demand, outweighing sluggish sales to overseas clients.
Growth - Services - Pressure - Exports - Demand
If sustained, solid growth in services could offset some of the economic pressure from weaker exports, which are faltering amid slowing global demand and the U.S.-China trade war.
But the outlook for domestic consumption is being clouded by a planned increase in the national sales tax to 10% in October. The previous increase in April 2014 to 8% from 5% hit consumers hard and caused a severe economic slump.
Services - Factory - Activity - Readings - Economy
Combined, services and factory activity readings suggest the economy grew 0.3 percent in the second quarter from a year earlier, slowing...
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