Decline in Service Sector Activity

According to a preliminary report by S&P Global, Japan's service sector has experienced a downturn, falling below the neutral 50 mark in March.

Details of the Drop

The au Jibun Bank Flash Japan Services Business Activity Index decreased from a six-month high of 53.7 in February to 49.5 in March. This decline is also reflected in the composite PMI, which reduced from February's 52.0 to 48.5.

Expert Insight

"Underlying data indicated a fresh fall in service sector activity, with a notable slowdown in the growth of new business at services companies," explained Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence.