The services sector in Japan has continued its growth trajectory in April, picking up speed according to a recent survey from Jibun Bank. The services Purchasing Managers' Index (PMI) score was reported at 54.3, slightly higher than March's 54.1. The PMI score further solidifies that the sector’s expansion is above the critical threshold of 50, which differentiates growth from contraction.
The survey noted a significant increase in new work orders — the fastest pace since June 2023. This growth has consistently accelerated over the past half-year. The surge can be attributed to the improving domestic economy and staunch customer demand. Additionally, export sales positively impacted the new business growth in April, with the most substantial increase seen in the past nine months.
Many companies disclosed an increase in sales due to a boost in inbound tourism. Service providers also grew their workforce for the seventh month in a row in April, maintaining the same pace of job creation as in March. Some anecdotal evidence, however, suggested that the scarcity of suitable candidates for positions occasionally hindered recruitment efforts.
