Japan Business Sector Returns to Expansion for First Time in Six Months

Source: IHS Markit

Japan’s business sector expanded for the first time in six months in October, as the dominant service sector posted a nine-month high. EWJ is up 0.94% premarket.

• The Flash Composite Output Index stood at 50.7, higher than the 50 threshold that separates expansion from contraction. 
• The latest reading follows 47.9 in September and is the first expansion in six months.
• The dominant service sector jumped for the first time since January, as manufacturers reversed the slight decline in September to continue growth.
• The au Jibun Bank Japan Manufacturing PMI rose to 53.0 from 51.0 in September, the strongest since July.
• Output and new order volumes reserved the declines in September, as firms remained confident over the next 12 months.
• The au Jibun Bank Flash Japan Services Business Activity Index increased to 50.7 from 47.8, the first rise since January 2020.