Japan’s Private Sector Activity Grew at the Fastest Pace in Over a Year

• Japan’s private sector activity grew at its fastest pace in over a year in August.
• The services sector drove the growth, with its activity index rising to 54.0 points.
• Manufacturing activity continued to decline, but at a slower rate, with the index improving to 49.5 points.

Tokyo, August 22 (FFN) – Activity in Japan’s private sector accelerated its growth rate in August to the highest level in over a year. This growth was driven by both the services and manufacturing sectors, with the former seeing an increased pace of growth and the latter experiencing a decline, though at a slower rate than in July. This information comes from a flash estimate provided by S&P Global, as reported by RTTNews and TradingEconomics.

The Jibun Bank Composite Purchasing Managers’ Index (PMI), which measures activity in both the manufacturing and services sectors, reached 53.0 points in August, up from 52.5 points in July. This indicates an acceleration in activity growth, as a reading above 50 points separates growth from contraction. Moreover, it is the highest level recorded since May of last year.

The acceleration in private sector activity was significantly supported by the services sector, where the pace of growth increased. The corresponding index reached 54.0 points, up from 53.7 points in July. New orders continued to grow solidly, and new export orders returned to growth.

Meanwhile, the manufacturing sector also contributed to the overall performance, although it continued to see a decline in activity. However, this decline was less pronounced, with the manufacturing index rising to 49.5 points in August from 49.1 points in July.