Japan’s Service Activity Remains in Expansion Territory in June as Demand Rises

Japanese service activity remained in expansionary territory in June on the back of healthy economic demand, according to a private poll released on Wednesday.

After hitting a record high of 55.9 in May, the final au Jibun Bank Japan Services purchasing managers’ index (PMI) dropped to 54 in June, still well over the 50-mark that separates contraction from expansion.

“The Japanese services economy signaled that demand conditions remained positive during June,” Usamah Bhatti, Economist at S&P Global Market Intelligence, said in a Wednesday release.

Bhatti noted that both business activity and new business were among the highest in series history.

The combined PMI for manufacturing and services activity has been trending downward since May’s high point. June’s index reading of 52.1 was down from May’s 54.3 reading but still over the 50 threshold.