Japan Jibun Bank September Services PMI (final): 53.1 (prior was 53.7)

Services 53.1 (prior was 53.7)

• Composite 52.0 (prior 52.9)

Preliminary is here:

• Japan Jibun preliminary Sep PMIs: Manufacturing 49.6 (prior 49.8) Services 53.9 (53.7)

The key points from the report:

• Business activity and new order growth sustained
• Outstanding business rises for second time in three
  months
• Confidence remains strong but eases to 20-month low

In summary from the commentary to the report:

• The Japanese service sector maintained strong performance at the end of Q3 2024, with only a slight slowdown in activity and new business growth, averaging 53.5, similar to Q1 (53.4), indicating steady growth.
• Companies remained optimistic, with rising outstanding business leading to workforce expansion.
• The service sector continued to support overall private sector growth, despite a slight dip in manufacturing output.
• However, aggregate new business growth slowed in September, and backlogs of work declined for the fifth consecutive month, influenced by the manufacturing sector’s weakness.
• The sector’s response to risks like a stagnating economy will be crucial for the broader private sector’s performance.

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Meanwhile USD/JPY is climbing again. I imagine it won’t be too long until there intervention type comments out of Japan.

USD/JPY hitting a one-month high

This article was written by Eamonn Sheridan at www.forexlive.com.