Reported 6 months ago
A recent PMI report showed that Japan's service sector maintained robust growth in May, with the index remaining above 50 since September 2022. New business continued to grow driven by tourism and a weak yen, with overseas demand rising at the fastest pace since September 2014. However, inflationary pressures persisted as input prices remained high due to factors like rising wages and material costs. Service providers passed these costs on to customers, and the Bank of Japan is expected to hike rates again this year despite a cautious approach to further tightening.
Source: YAHOO