What Japan’s Improving Services PMI Indicates
Japan Services PMI
According to a Markit Economics report, the Japan Services PMI (Purchasing Managers’ Index) was 51.9 in January 2017 compared to 52.3 in December 2016. It met the market expectation.
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Improvement in the Japan Services PMI indicates that production output, new orders, and export orders rose at a higher rate in January 2017. But compared to December 2016, it showed weaker improvement. January was the fourth consecutive month of expansion in services activity. Before that, it was in a contraction zone. A level above 50 is known as expansion, while a level below 50 is known as contraction.
Japan’s (EWJ) (DXJ) manufacturing activity has also been expanding for the last four months. That indicates that the manufacturing PMI is improving gradually. Overall domestic and international (VT) (ACWI) (VTI) demands are improving. That’s a good sign since Japan has been suffering from lower economic growth.
In the next part of this series, we’ll analyze the performance of the India Services PMI for January 2017.