2023.12.0500:35:00UTC+00Japan Service Sector Ebbs In November - Jibun

The service sector in Japan continued to expand in November, albeit at a slower rate, the latest survey from Jibun Bank revealed on Tuesday with a PMI score of 50.8.

That's down from 51.6 in October, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

Sustained growth of total activity was mainly linked to higher new business receipts. Demand for services in Japan rose for the fifteenth successive month, the second-longest sequence of continuous expansion in the survey history.

The rate of growth was among the weakest in 2023, but still compared favorably with the long-run survey trend since 2007 of a slight decline in demand. New business intakes were supported by an ongoing domestic post-COVID recovery, while international demand weakened.

The composite PMI slipped into contraction at 49.6, down from 50.5 in October.

Growth of services activity was maintained, but lost momentum and was insufficient to offset a faster drop in manufacturing production. The decline in goods output was the sixteenth in the past 17 months, and the strongest since February.