Japan (final Dec) Services PMI: 49.4 & Composite: 48.6

Japan final services and composite PMIs for December, Jibun Bank / Markit.

For the previous and flash readings:

• Japan preliminary PMIs for December - manufacturing down on the month (services up)

Both in contraction, and that services result is the lowest in 3 years (more than 3 years). For the December quarter as a whole, worst Q since 2016.

Markit comments:

• Commenting on the latest survey results, Joe Hayes, Economist at IHS Markit, said: underlying conditions in the service sector have deteriorated and are no longer strong enough to support the Japanese economy
• fourth quarter GDP is likely to contract
• the sales tax and typhoon hampered October's performance, we saw a very limited recovery in November and the service sector has registered its strongest downturn in over three years in December
• Japanese economy has most likely entered a cyclical lull, although continued job creation and upbeat expectations provide a glimmer of hope