Japan's service-sector activity growth reached 3-month low

In Japan, service sector indicators showed a slight increase in activity over the past three months. This result was caused by inflation that slowed down the economy. 

The Jibun Bank Japan Services Purchasing Business Activity Index (PMI) fell to 50.3, down from 53.2 in October. Thus, the lowest level since August was reached. Nevertheless, the index remained above 50 for the third month in a row.

Laura Denman from S&P Global Market Intelligence explained that the decline in the indices occurred due to inflationary pressures. All this was accompanied by rising input costs and selling prices, which remained well below historical levels.

The subindex of new export enterprises hit a seven-month high after Japan loosened border controls in October.

The composite PMI, which is calculated by combining production and services indicators, had reached 51.8 the previous month. In November, the index was already at 48.9 due to a contraction in manufacturing activity.