The Japanese service sector shrank in August. This was revealed on Friday by final figures from Markit.
The index measuring the activity of the country’s services sector reached 42.9 in August, compared with 47.4 in July. This is the sharpest decrease since May 2020.
Earlier this week, the Purchasing Managers Index for Japanese industry also decreased in August, from 53.0 in July to 52.7. The composite index thus fell from 48.8 to 45.5.
At the same time the data for August become available. According to Markit the service economy of China also shifted to the red zone and reached 46.7 points.
50 is considered neutral, while everything lower than that means contraction.