2023.10.0409:53:00UTC+00Japan Services Activity Maintains Solid Expansion In September

Japan's service sector activity showed a further strong expansion in September, though rate growth eased amid a slower rise in new business inflows, survey results from S&P Global showed on Wednesday.

The au Jibun Bank Services Purchasing Managers' Index dropped to 53.8 in September from 54.3 in August. However, a reading above 50.0 suggests expansion in the sector.

New orders grew for the thirteenth successive month in September, which was more evident in domestic markets.

Despite lower capacity, outstanding business increased only fractionally in the latest survey period, the survey said.

While the most recent round of input price inflation slowed from that witnessed in August, Japanese service firms continued to report significant rises in operating expenses during September.

Concurrently, prices for Japanese services increased in September at a slower rate than in the previous three months.

Although the 12-month forecast for economic activity remained quite positive in September, overall confidence declined to its lowest level since the year's beginning.

The composite output index dropped to 52.1 in September from 52.6 in August, signalling a softer increase that was the slowest since June.