Japan's service activity grows at record pace in April - PMI

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Japan's service activity grows at record pace in April - PMI
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Japan's services activity grew at a record pace in April, a private-sector survey showed on Monday, helped by a boost in consumer spending following the end of COVID-19 pandemic restrictions.

The final au Jibun Bank Japan Services purchasing managers' index climbed to a seasonally adjusted 55.4 last month from March's 55.0.It was also higher than the flash reading of 54.9 and well above the 50-mark that separates expansion from contraction for a seventh straight month.

"There were also many reports citing a boost to sales from the recovery in international tourist arrivals and subsequent improvement in new business from abroad," he said. The government also decided to reclassify COVID-19 as an infectious disease level on par with the seasonal flu.New orders expanded at the fastest pace on record, the survey showed, citing a sharp return of spending for travel and tourism.

"Around four times as many service providers expect an increase in activity as those that forecast a decline," Moore said.

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