Japan services PMI points to slow inflation

Nikkei Japan services PMI released this Tuesday morning showed a weakening of inflationary pressures in the service sector during April.

The headline seasonally adjusted Business Activity Index came-in at level of 52.2 in April. This was slightly below the March figure of 52.9.

Key points

“Operating expenses continued to increase, but at a relatively modest pace that was the lowest recorded for six months. Meanwhile, output charges rose only slightly during the month.”

“Confidence regarding activity in one year’s time was only slightly lower than March’s 19-month high.”