Japan’s service industry growth rate is the fastest since 2019 | Coronavirus pandemic

The world’s third largest economy lags behind other wealthy countries in the recovery from the COVID-19 pandemic.

Due to the surge in new business, Japan’s November service industry activity grew at the fastest rate in more than two years, indicating that as the coronavirus pandemic subsides, consumer confidence has increased.

this The world’s third largest economy lags behind other developed countries In recovering from the blow of the pandemic, the coronavirus suppressed activity for part of the year.

In the end, the au Jibun Bank Japan Service Purchasing Managers Index (PMI) rose from rapid readings of 50.7 and 52.1 last month to a seasonally adjusted 53.0.

This is the fastest expansion rate since August 2019.

“New orders have risen for the first time since January 2020, because panelists said the emergency relief measures boosted confidence and sales,” said Usamah Bhatti, an economist at IHS Markit who prepared the survey.

“Despite increased demand and evidence of pressure on capacity, Japanese service providers have reduced their staffing for the first time since July.”

As global chip shortages and soaring raw material prices put pressure on manufacturers, stronger spending on dining out, overnight stays and other services may support the Japanese economy.

“Both manufacturers and service companies pointed to a significant increase in cost pressures in November,” Batty said.

The combined PMI estimated using the manufacturing and service industries has grown at the fastest rate in more than four years, rising to 53.3 from the final value of 50.7 in October.

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