Japan's service sector index slipped to 47.5 in October 2024, down from a downwardly revised 47.8 in September, marking its lowest level since July.
Japan services sentiment lowest in three months
However, the result exceeded the market consensus of 47.2. The decline was primarily driven by weaker trends in household budgets, particularly within the housing sector. In contrast, the corporate sector index rose, supported by growth in the manufacturing industry, while the employment index showed improvement.
Economic outlook also worsens
The economic outlook index also fell to 48.3, its lowest in three months, down from 49.7 in September. This drop reflects concerns over rising prices, even as the economy shows signs of gradual recovery.
