The Japanese services sector sustained its expansion throughout February, according to recent data from Jibun Bank. However, the rate of growth decreased slightly, with a services Purchasing Managers' Index (PMI) of 52.9, a slight drop from January's 53.1. That being said, the industry remains in a healthy state, exceeding the critical 50-point mark that distinguishes between growth and decline.
In other developments, the growth trajectory of new business persisted, with the expansion rate reaching a six-month high. The growth was predominantly propelled by domestic demand, whereas new export business remained largely unchanged.
Improved demand circumstances prompted successful recruitment efforts, contributing to a robust growth in employment among service providers. This constituted the most substantial increase in job creation since the previous May. Despite the surge in workforce, there was still a significant increase in backlogs of work, reaching the highest level in eight months.
