Service Sector Growth in Japan

Japan's service sector has shown remarkable resilience in July, with the Business Activity Index climbing to 53.6, up from 51.7 in the previous month. This growth is attributed to an increase in new work orders, signaling a positive shift in the economy.

Composite PMI Shows Steady Improvement

Alongside the service sector's performance, the composite PMI also witnessed a slight increase, moving from 51.5 in June to 51.6 in July. This indicates a gradual but steady improvement across Japan's economic sectors.

Future Outlook and Economic Stimulus

Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, highlighted the importance of strengthening customer demand, especially from overseas, to sustain this growth. The recent US-Japan trade deal is anticipated to boost confidence and consumption, providing a much-needed lift to the manufacturing economy in the coming months.