The activity in Japan's services sector observed an increase in January compared to the previous month, landing above the neutral 50 mark, with the Jibun Bank Flash Japan Services Business Activity Index coming in at 52.7, compared to last month's figure of 50.9, S&P Global said in its preliminary report on Friday.
The Manufacturing PMI fell from 49.6 in December to 48.8 in January, landing below the neutral 50 mark. The composite PMI, which takes into account the results achieved in the two aforementioned sectors, increased from last month's 50.5 to 51.1.
"Japan's private sector expansion continued into a third consecutive month at the start of 2025, with the rate of growth strengthening slightly on the month. That said, the headline index masks diverging trends in the two main sectors. The expansions in private sector business activity remained services-led, where the rate of increase strengthened to a four-month high. At the same time, manufacturing output fell at the strongest rate since last April," S&P Global Market Intelligence economist Usamah Bhatti said.
