Japan’s service sector growth slowed in September, as output and new orders rose at slower rates, results of a survey by Markit Economics showed Monday.
The services purchasing managers’ index, or PMI, dropped to 51.4 in September from August’s 22-month high of 53.7. However, any reading above 50 indicates expansion in the sector.
The composite index, which combines scores from the manufacturing and services indexes, also fell to 51.2 in September from 52.9 in the prior month.
New business at the services firms increased for the sixth month running in September, but the rate of expansion was marginal and was still in line with the average in 2015. Similarly, manufacturing orders climbed at weaker rate.
Service providers raised their staffing levels in September, offsetting the fall observed in August. Moreover, the rate of expansion was the quickest since November 2014. At the same time, manufacturing employment decreased for the first time since March.
On the price front, input price inflation accelerated slightly in September, led by higher raw material and staffing costs at Japanese service providers. In the the goods producing sector, input price inflation resumed during the month, while charges declined at the quickest rate since March 2013.
The material has been provided by InstaForex Company – www.instaforex.com