Nikkei / Markit
- prior 51.9
- prior 52.8
Key points highlighted by Markit:
- Business activity rises, albeit at weaker rate
- Employment growth eases to three-month low
- Level of positive sentiment falls
Commenting on the Japanese Services PMI survey data, Joe Hayes, Economist at IHS Markit, which compiles the survey, said:
- «The pace of expansion in Japanese service sector output was broadly unmoved in February, ticking fractionally lower overall.
- Demand pressures rose at a similar peg to output, meanwhile employment rose at a slower pace. Weaker job growth in tandem with a softer rise in new business appeared to concern Japanese service providers, as the degree of optimism deteriorated to a four-month low
- Softer inflationary trends were also apparent in February, with both prices paid and prices charged rising to slower extents. Panellists indicated that increased food and fuel prices remained a principle factor behind higher selling charges, as has been seen in official CPI statistics. With PMI data signalling weaker demand-pull pressures, there appears to be little incentive for businesses to substantially raise consumer prices in the immediate future.
- This supports the Bank of Japan to reiterate its dovish stance and allay fears of a possible unwind of ultra-loose monetary conditions.»