Japan’s services sector returned to growth in November, with PMI Services index finalized at 50.5, up from 49.7 in October. Composite PMI, which combines manufacturing and services activity, edged up to 50.1 from 49.6, signaling a modest overall improvement in private-sector activity.
Usamah Bhatti, Economist at S&P Global Market Intelligence, noted that the services sector experienced a “renewed upswing” as improved demand and stronger client confidence supported output and sustained new business growth. The sector’s near-term outlook appears favorable, with growth in outstanding business reaching its highest level in eight months, and optimism about the 12-month outlook remaining robust.
While the services sector drove the overall stabilization, the manufacturing sector continued to lag, with a slight contraction in production. Input cost pressures persisted across industries, contributing to higher prices for goods and services. However, businesses expressed optimism that inflationary and global uncertainties would subside, paving the way for a stronger rebound in Japan’s private sector.
