Yesterday we got the Japanese tertiary industry index for March
'Tertiary' industry activity accounts for around three-quarters of total output of the Japanese economy
Mike had the data: Japan March tertiary industry index -0.2% vs 0.1% exp
More now:
The -0.2% m/m was under expectations of +0.1%
- and the previous month was revised lower, from +0.2% m/m to flat ( 0.0% change m/m)
This was a very weak result, and for the quarter as a whole its weak also:
- Down 0.2% q/q
- This is first quarterly decline since Q4 201
The softness was mainly due to two sub sectors:
- wholesale trade activity fell by more than 3% q/q
- finance sector output fell over 2% for the q/q
The positives included tourism, civil engineering activity and some retail sector improvement (small). The improvement in retail is welcome as it indicates better consumption-related activity (household spending for Japan has been weak)
- external demand also provided support
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Note ... the first estimate of Q1 GDP is due on Thursday:
- consensus expected is +0.5% q/q, +1.7% y/y (q/q sa annualised)
- prior +0.3% & +1.2% respectively
And, later today we get March final Industrial production
