— Japan May Tertiary Index +0.7% M/M: MNI Fcast +0.2%
— Japan Tertiary Index Posts 1st Rise in 5 Months; Apr -0.2%
TOKYO (MNI) – Japan’s tertiary industry index, which measures
spending in the services sector, rose 0.7% on the month in May, posting
the first rise in five months on solid demand for cars, data from the
Ministry of Economy, Trade and Industry showed on Wednesday.
The May figure came in higher than economists’ median forecast for
+0.2% in a MNI survey and followed -0.2% in April.
The seasonally adjusted index stood at 99.1 (against 100.0 in the
2005 base year) in April, posting the highest level since 99.2 in
February but staying below the pre-disaster level at 99.4 marked in
February 2011.
Automobile sales sagged in most of 2011 after the government ended
subsidies for buying greener cars and trucks in September 2010 but they
have been supported by the resumption of the program in December last
year.
But economists have warned of a slowdown in retail sales of cars.
The government program may be terminated in July, two months earlier
than expected, as it is running out of money due to high demand.
The service sector employs more than half of Japan’s workforce, and
spending on services such as retailing, dining and travel is closely
tied to changes in income and consumer confidence.
tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-5403-4835 **
[TOPICS: M$J$$$,M$A$$$,MAJDS$]
