The services sector in Japan fell into contraction territory in October, the latest survey from Jibun Bank revealed on Wednesday with a services PMI of 49.7.
That’s down from 53.1 in September, and it falls beneath the boom-or-bust line of 50 that separates expansion from contraction.
Business activity fell for the first time in four months, while new business inflows slowed, owed in part to a renewed and moderate contraction in exports. Outstanding business contracted for the second time in three months.
The stagnation in activity weighed on the 12-month outlook, as optimism dropped to a 31-month low. Input cost inflation strengthened, but charges rose at a broadly similar pace to the previous month, placing pressure on profitability.
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