In December, Japan's services sector continued its expansion at an accelerated pace, according to a recent survey conducted by Jibun Bank. The report, released on Monday, highlights a services PMI of 50.9, marking an increase from November's 50.5. This figure is noteworthy as it lies above the critical 50 threshold, differentiating between expansion and contraction.
The data shows that total new work rose for the sixth month in a row, with December witnessing the most robust growth since August. New business expansion has reached a four-month high. Although inflationary pressures remain historically high, they are stable. There is a strong sense of optimism among survey respondents regarding the economic outlook for the upcoming year. Respondents largely credit new customer acquisitions, particularly within the domestic sphere, for this positive trend. However, export sales have continued to detract from overall new business growth as of the end of 2024, marking a decline for the third consecutive month.
Service providers have increased their payrolls for the fifteenth straight month, albeit at a modest growth rate. Anecdotal evidence indicates that companies are hiring additional staff to support business expansion efforts.
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