Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    US employment cost index 3.6% up in year to June 2025    Egypt welcomes Canada, Malta's decision to recognise Palestinian state    Pakistan says successfully concluded 'landmark trade deal' with US    Sterling set for sharpest monthly drop since 2022    Egypt, Brazil sign deal to boost pharmaceutical cooperation    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Egypt exports first high-tech potato seeds to Uzbekistan after opening market    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Japan services drop for 1st time in 2 yrs
Published in Amwal Al Ghad on 03 - 07 - 2024

Japan's service sector, a recent driver of economic growth, contracted for the first time in nearly two years in June, according to a private sector survey released on Wednesday. The slowdown comes amid cooling domestic demand.
The final au Jibun Bank Service Purchasing Managers' Index (PMI) fell to 49.4 in June, down from 53.8 in May. This marks the end of a 21-month streak of expansion for the sector, as reported by the S&P Global Market Intelligence survey.
The PMI reading was even weaker than the initial estimate of 49.8, which itself was the first reading below the 50.0 threshold (separating expansion from contraction) since August 2022.
However, analysts believe the decline in new business signifies a pause in growth rather than a significant drop in demand. "Looking beyond the headline figure, the picture is less concerning," said Trevor Balchin, economics director at S&P Global Market Intelligence.
The survey showed varied results in different service industries. Consumer services, finance, insurance, and real estate experienced a decline in demand in June, while transport, storage, and information and communication sectors saw growth.
The weak yen, which has depreciated over 12 per cent this year, also provided some support for Japanese services by boosting overseas demand.
Despite the slowdown, employment growth and business confidence in the next 12 months remain positive, albeit at a slower pace.
On the flip side, rising input costs pose a challenge. A combination of factors, including wage increases, food and fuel prices, and the weaker yen, have driven the fastest inflation for Japanese services since August 2023.
Companies are responding to higher wages and material costs by passing on price hikes to consumers, with the pace of average prices charged showing only a slight decrease from record highs in April and May.
The composite PMI, which combines data from both manufacturing and service sectors, dropped to 49.7 in June from 52.6 in May. This is the first time in seven months that the index has dipped below the 50.0 mark.
Attribution: Reuters
Download


Clic here to read the story from its source.