Private sector activity in Japan declined in June, according to a preliminary report by S&P Global on Friday. The Composite Purchasing Managers' Index (PMI) fell to 50 from 52.6 in May. The services PMI is back in contraction territory at 49.8 compared to 53.8 in May, while the manufacturing PMI dropped from 50.4 in May to 50.1 in June. However, the manufacturing output saw the first expansion since May 2023.
"Confidence about business activity growth in the next 12 months fell among service providers, which weighed on overall sentiment levels in June. The conflicting pressure of rising cost pressures, stemming from currency fluctuations, and stalling growth conditions on monetary policy can therefore be observed from these early indicators of economic conditions in Japan," Economics Associate Director at S&P Global Jingyi Pan said.
