Japan's Service Sector Activity Grows At Fastest Rate In Over 8 Years - PMI

• Japan's services sector activity expanded at the fastest pace in over eight years in June as the easing of coronavirus curbs boosted sentiment among businesses such as those in tourism. 
• The pick-up in activity is welcome news for a government betting on domestic demand to put the world's third-largest economy firmly on a recovery track and help overcome production pressures on the country's manufacturing industry. 
• The final au Jibun Bank Japan Services purchasing managers' index (PMI) rose to a seasonally adjusted 54.0, marking the fastest pace of expansion since October 2013. That was stronger than May's final 52.6 growth, though it remained below a 54.2 flash reading for June released last month. 
• Greater demand for services and rising fuel and raw material prices, however, caused firms' average input prices to increase at a record pace. This pushed firms to raise prices charged for services at the quickest rate since October 2019," said Usamah Bhatti, economist at S&P Global Market Intelligence, which compiles the survey. 
• A resurgence in COVID-19 cases overseas, especially in Japan's major trading partner China, hindered international sales, according to the survey.

(Source: Reuters)