The services sector in Japan continued to contract in September, albeit at a slower pace, the latest survey from Jibun Bank showed on Tuesday with a services PMI score of 47.8.
That’s up from 42.9 in August, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
new business declined at a softer pace in the latest survey period. The reduction extended the current sequence to 20 months, though the rate of decline was only modest. Panel members highlighted that extended state of emergency restrictions continued to weigh on demand.
Moreover, international demand weakened at a softer pace than total new business. Where orders fell, panel members attributed this to a surge of infections caused by the Delta variant, although this had shown some signs of easing
Also, the composite PMI improved to 47.9 from 45.5 in the previous month.