Japan Services Sector Growth Slows to Three Month Low
Japan services growth slowed in March as the Middle East war hit business confidence. Rising costs and global demand concerns weighed on the sector expansion.
The service sector in Japan experienced a slowdown in growth during March as geopolitical tensions in the Middle East weighed heavily on business sentiment. According to the latest private sector survey, business confidence plummeted to its lowest level since the early stages of the pandemic, driven by concerns over global demand and persistent inflationary pressures.
The final services Purchasing Managers Index (PMI) compiled by S&P GLOBAL INC retreated to 53.4 in March, down from a 21-month peak of 53.8 recorded in February. Despite the decline, the figure remained above the 50.0 threshold that separates expansion from contraction for the 12th consecutive month and outperformed the initial flash estimate of 52.8.
