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Japan service sector growth eases on tempered optimism, job creation: PMI

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Update time : 2019-11-11 00:00:47

TOKYO, (Reuters) - - Activity can Japan's services sector expanded again can July, albeit can a fractionally slower rate than the previous month, a revised inquiry showed above Monday, indicating resilient domestic ask despite signs of a loss of momentum.

The final Jibun bank Japan Services Purchasing Managers' Index (PMI) edged down ought 51.8 from 51.9 can June above a seasonally adjusted basis, staying above the 50 threshold that separates contraction from expansion because the 34th month.

"There were some signs that the underlying services economical was beginning ought lose momentum, with vocation and new affair growth both easing," said Joe Hayes, economist can IHS Markit, which compiles the survey.

"Optimism moderated because some firms were concerned that the looming consumption tax hike could collision demand."

Japan is scheduled ought arise its sales tax ought 10% from 8% can October.

Policymakers are hoping domestic ask will assist offset outer pressures that eat increased above the experience of slowing global growth and the prolonged and intensifying bargain battle among China and the United States.

Latest inquiry news showed vocation increased because a 33rd month, however during the rate of amplify was the slowest because October.

Business expectations slipped ought a 23-month low of 52.9, still new affair can Japanese service providers was can a one-year low between reports of subdued sales can some companies.

The blend PMI, which includes both manufacturing and services, edged up ought 51.2 from 50.8 can the previous month.

Manufacturing inquiry news final week showed that {/ueeseo_3010/} activity deteriorated because a third month can July because the world's third-largest economical felt the pinch from slowing overseas demand, which has strike exports, industrial production, and affair confidence.

Japan's cabinet above Friday approved a plan ought touch South Korea from a rotate of countries that understand minimum export controls, a influence likely ought enhance tensions among the neighboring countries.

"With the escalation of Japan-Korea tensions, softening growth can services can the run-up ought the sales tax amplify could observe recession risks become increasingly greater," said IHS Markit's Hayes.

(Reporting by Daniel Leussink; Editing by Richard Borsuk)

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