Services 52.2

preliminary 51.9

prior 49.5

Composite 51.0

preliminary 50.9

prior 49.4


Commentary from the report:

  • "September brought along a more positive month for Japan's service sector as activity levels returned to growth. The announcement that restrictions on foreign tourism will be lifted from October should also help support greater economic activity levels across Japan over the coming months.
  • "Business confidence improved to a three-month high, reflecting improving sentiment towards the year ahead among service providers as many expect fewer COVID-19 restrictions to enable a sustained recovery.
  • "That said, the inflation story remains of concern, with latest PMI data showing stronger price pressures over the month. Costs were driven higher by a range of sources, according to firms, such as utility bills, raw materials, fuel and wages. Yen weakness is also leading to imported inflation and is another reason why the relaxation of travel restrictions will be welcomed if it provides some much needed support for the yen as demand for the currency rises."

Inflation of concern? The Bank of Japan will welcome price pressures.

USD/JPY has fallen on the session, extending its overnight drop:

usdyen JPY 05 October 2022