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Japan's Private Sector Growth Slows in July, S&P Survey Shows

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Business activity across Japan's private sector contracted marginally in July, with the final au Jibun Bank Japan Composite Purchasing Managers' Index (PMI), compiled by S&P Global, coming in at 52.7, according to data released on Wednesday.

The latest print, which tracks combined output across both the manufacturing and service sectors, compared with the 52.8 recorded in the previous month. A reading above 50 indicates an overall expansion in private sector activity, while a figure below signals a contraction.

The monthly momentum reflected a split performance across the economy. The manufacturing PMI saw the quickest increase in factory production since early 2014, while the services PMI edged down to 51.2 from 52.2.

Overall, new orders increased at a softer pace, despite a steeper upturn in new export business. Meanwhile, overall employment rose for the 34th month in a row, though the rate of job creation eased slightly from June.

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