Japan services PMI hits 2-year high as new orders rise

Japan services PMI hits 2-year high as new orders rise

International News

The Nikkei Japan Services Purchasing Managers’ Index, or PMI, rose to a 26-month high of 53.4 in October from September’s 51.0, backed by an increase in new orders. A reading above 50 indicates economic expansion, while one below 50 points toward a contraction. Joe Hayes, an economist at IHS Markit, said that October’s growth was “underpinned by new business growth accelerating to the quickest rate since May 2013.” “In the wake of Shinzo Abe’s election victory [on Oct. 22], confidence among Japanese service providers lifted,” Hayes added. “The level of positive sentiment strengthened to the joint-highest since May, on a par with June.”