Friday, August 6, 2010

Japan Services PMI-PMI report fell for the third consecutive month in July

Japan Services PMI - The headline business activity index in the services PMI report fell for the third consecutive month in July, and now stands at 46.3, which was 2.0pt lower than the 2Q average, but still higher than the average in 1Q (45.4). It is also discouraging that both of the two forward-looking indicators, new business and business expectations (the latter of which asks about prospects for firms' own business activity 12 months ahead), showed m/m drops. However, the movement in the employment index (recovered part of the losses in the previous month, remaining on an uptrend since this spring) implies that business prospects at the service sector is not as bad as impressed by the above.

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