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Japan's service activity expands for second straight month

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Japan's service sector activity expanded in December, driven by strong demand and continued business growth, according to the final au Jibun Bank Services PMI by S&P Global Market Intelligence. The PMI rose to 50.
Japan's service sector activity expanded for the second consecutive month in May, driven by a surge in new business and a significant increase in tourism. The au Jibun Bank flash Japan services purchasing managers' index (PMI) rose to 53.8 from 53.6 in April, indicating growth as any reading above 50 signifies expansion. This growth was supported by a notable increase in new orders, particularly from international visitors, although the pace of increase in new business slowed slightly from the previous month. Despite the positive trend, employment in the sector continued to decline, and there was a slight decrease in the rate of input price inflation. However, service providers expressed optimism about future business activity, buoyed by expectations of sustained demand and potential government initiatives.

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