Japan Services Sector Stagnates

(RTTNews) - Japan services sector stagnated in March and contrasted with expansions in the past four months due to subdued market conditions, final data from S&P Global showed on Thursday.

The au Jibun Bank Japan services Purchasing Managers' Index fell to 50.0 from a six-month high of 53.7 in February. The flash score was 49.5.

Companies reported the softest increase in overall new work in four months, while new export business expanded at a slower pace.

Cost pressures remained sharp, with prices rising at the quickest pace in over a year-and-a-half, leading to a further increase in output charges.

Business confidence among service providers waned in March, with overall optimism slipping to the lowest level in over four years.

Further, the survey showed that composite output declined at quickest pace since November 2022.

At 48.9 in March, the au Jibun Bank Japan composite output index fell from 52.0 in February and posted below the neutral 50.0 level for the first time since October 2024. The flash score was 48.5.