Market updates and forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

Japan’s Services Sector Fastest Growth Over Six Months in April


May, 02 2018
watermark Economic news

The services sector in Japan rose at the quickest rate in first half of the year due to more demand for new orders, based on the private poll on Wednesday. This implies that the economy kick starts the second quarter in a good light.

However, the business confidence seems to have slowed down as reflected from the survey since there has been a difficulty in hiring despite a shortage of workers.

Japan Services Purchasing Managers Index (PMI) climbed to 52.5 in April on a seasonally adjusted basis compared to 503.9 in March. The index is still above the 50 mark that separates the expansion from contraction for 1 year and 7 months as the highest in six months as recorded.

The output may have weakened in February to March but starting the second quarter, the momentum picked up, according to an economist at IHS Markit, Joe Hayes who compiles the survey. “Panelists noted that increased competition and rising labor shortages may impact output potential over the coming 12 months.”, he added.

Meanwhile, the growth of new businesses also picked up in March following the decline of future business expectations becoming the lowest record in seven months.

As for the manufacturing and service sectors, the composite PMI increased to 53.1 from 51.3 in March. At the same time, the Japanese manufacturing activity also rose at a faster rate in April, according to the survey on Tuesday. However, a stronger yen slowed down the growth of export orders despite more demand.

The forecast growth on the Reuters poll grew by 0.5 percent annually in the first quarter as the consumer spending and factory output weakened. Hence, this indicates a slowdown from 1.6 percent annualized growth in the fourth quarter.

Ultimately, the Asian economy grew for eight consecutive quarters in 2017, which has been the longest continuous growth since the bubble economy in the 1980s.

Yet, some economists are worried that there would still be sluggish due to higher inventories in the semiconductor and electronic parts sector.


Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.