Japan's service sector hits 3-month low

Au Jibun Bank’s services sector purchasing managers’ index (PMI) fell to 50.3 in November and grew at its slowest pace in three months. Japan’s services sector activity grew at its slowest pace in three months in November. Au Jibun Bank’s services sector purchasing managers’ index (PMI) fell to a seasonally adjusted 50.3 in November from 53.2, the weakest since August. A figure above 50 indicates expansion in the sector, while below it indicates contraction. The soft headline figure was driven by inflationary pressures that “remained evident, with input cost rates and selling price inflation remaining well above their respective historical averages,” said Laura Denman, an economist at S&P Global Market Intelligence, which compiles the survey. A separate government survey on Thursday showed Japan’s consumer confidence index fell to its weakest level since June 2020 in November, with price inflation marking the fastest increase in 40 years.