by Chris Becker
Some good news this morning building on the steady state (with some bumps) release of the Chinese non manfucaturing PMI, the Market Japan Services PMI came in at a firm 52.5, up from the flat 49.9 of last month. This is the best expansion since this time last year
The Yen has responded smartly, taking back all of the losses from last night and heading back to 109, with the Nikkei 225 dragged along:
Advertisement
Some interesting internals from the survey, including:
- Rising activity was mainly linked by respondents to increased new business.
- New orders grew at a solid pace during September, with the rate of expansion quickening to the sharpest pace since May 2013.
- On prices, inflationary pressures persisted for both selling prices and input costs at both Japan services and goods producers.
- Input prices inflation, on the other hand, recorded the highest rate since September 2008.
- Anecdotal evidence attributed the rise in prices to a combination of higher wages, increased fuel costs and the implementation of the
- higher sales tax in April.
- Average costs faced by goods producers, meanwhile, rose for the twenty-first successive month
- Average selling prices rose for third month in a row
So it looks like some elements of Abenomics are working, at least the producer level and sentiment is growing. Here’s the comparison to GDP, which should rebound historically on this result:
Advertisement
