Au Jibun Bank Japan Services PMI was revised up to 54.0 in February 2023 from preliminary estimates of 53.6.
The latest result followed a 52.3 finish in the previous month and marked the sixth straight month of expansion and the fastest pace since June of last year, amid a notably stronger increase in new business entries, as the impact of the pandemic receded.
New business accelerated to a nine-month high as domestic and international demand picked up, with new export orders rising at the second strongest pace in more than three years.
As a result, employment expanded again, as demand picked up.
In terms of prices, input cost inflation moderated for the first time in three months, while output cost inflation rose for the tenth consecutive month.
The au Jibun Bank Japan Composite PMI Output Index* rose from 50.7 in January to 51.1 in February, indicating a faster expansion in private sector output.
Finally, business confidence strengthened to a four-month high, amid hopes that the lifting of pandemic restrictions in China and an improving global economy would boost demand conditions.
Commenting on the results of the latest survey, Usamah Bhatti, economist at S&P Global Market Intelligence, said: “The near-term outlook also looks positive, as expanding demand contributed to the steepest increase in backlogs. in five and a half years.” , while the 12-month outlook for activity strengthened to a four-month high.”
“Japanese private sector companies remained highly optimistic that activity would continue to expand over the next 12 months as the lingering pandemic and inflation burdens on the economy showed sustained signs of easing. As such, companies reported the highest degree of confidence since last October, in line with the projections of S&P Global that foresee a growth of the Japanese economy of 1.2% in 2023”.
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