Japon PMI Services

Services PMI was revised higher to 49.7 in October 2024 from preliminary estimates of 49.3 and after a final 53.1 in the prior month. It was the first drop in the service sector since June, as new business slowed due to a renewed and moderate reduction in exports that was the steepest since June 2022. Employment increased for the thirteenth consecutive month and the fastest pace in three months, as firms had sufficient capacity to work through existing work, albeit fractional depletion in the level of outstanding business. Regarding prices, input cost inflation accelerated and remained well above the long-run survey average due to higher labor and raw material costs. Meanwhile, output cost inflation has little changed amid ongoing pressure on profitability. Finally, confidence eased to a 31-month low due to concerns that demand would stay stagnant.