The services sector in Japan continued its expansion in September, although the growth rate has slowed, as indicated by the latest survey from Jibun Bank which reported a services PMI of 53.1. This marks a slight decline from August's score of 53.7, but it remains above the critical threshold of 50, which distinguishes expansion from contraction.
In September, total new work saw a moderate increase, though the growth rate decelerated for the second consecutive month. Despite this, it stayed above the long-term survey average. The transportation and storage sectors experienced the strongest demand growth, whereas the Information & Communication sector witnessed a decline.
Exports contributed to the overall demand, albeit to a limited extent. Firms noted new international business opportunities across various Asian regions, although they reported weaknesses in significant markets like mainland China.
The composite PMI for September fell to 52.0 from August's 52.9. Business volumes, while growing again, increased at a slower pace than in August. This growth was primarily driven by the services sector, whereas manufacturers saw a slight decline in new work.
