The services sector in Japan continued to expand in July, albeit at a slower pace, the latest survey from Jibun Bank revealed on Wednesday with a services PMI score of 50.2.
That's down from 53.0 in June, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
Activity increased at the softest pace in four months and only fractionally amid a notably weaker rise in new business inflows, as firms noted that the boost received from the lifting of Omicron-related containment measures had waned.
Softer demand conditions led to reduced capacity pressures, and businesses were able to reduce levels of outstanding business for the first time since April. At the same time, inflationary pressures remained elevated across the Japanese service sector
The survey also showed that the composite PMI fell to 50.3 in July from 54.0 in June.
Aggregate new orders also stalled in July, following two consecutive months of growth. Manufacturing firms noted the quickest drop in sales since November 2020, while new order growth at services firms dipped to a three-month low.
