\n \n \n “. concat(self. i18n. t(‘search. voice. recognition_retry’), “\n
TOKYO (Reuters) – Activity in Japan’s sector fell for the first time in five months in August as a resurgence of COVID-19 infections hurt demand, according to a business survey.
The contraction shows that the recovery in the world’s third-largest economy remains fragile and worrisome for the most part productive at a time when the outlook for global expansion is pessimistic.
Jibun Bank Japan Services’ latest Purchasing Managers’ Index (PMI) fell to a seasonally adjusted 49. 5, marking the first contraction since March.
The figure was higher than a preliminary reading of 49. 2 but worse than a slight expansion in activity of 50. 3 in July. The mark of 50 separates contraction from expansion.
“A further decline in activity accompanied a further decline in output, and production fell at the fastest rate since September 2021,” said Annabel Fiddes, associate director of economics at S.
“However, service providers noticed a smaller drop in production than they noticed in early 2022, when there was also an increase in infections, as pandemic-related restrictions have been particularly eased since then. “
Average prices of service corporations rose at a marked pace in August due to rising energy, fuel and crude prices, while companies continued to slightly increase their price lists.
The composite PMI, which is estimated in both production and services, fell for the first time since February, falling to 49. 4 from 50. 2 in July.
“Most likely, the Japanese personal sector will remain under pressure in the coming months,” Fiddes added.
(Reporting through Daniel Leussink; Editing via Kim Coghill)