TOKYO, March 3 (Reuters) - Japan's services sector
activity grew at the fastest pace in eight months in February, a
private sector survey showed on Friday, as the economic impact
of the coronavirus pandemic receded globally.
The final au Jibun Bank Japan Services purchasing managers'
index (PMI) rose in February to a seasonally adjusted 54.0 from
January's 52.3.
The final figure was higher than the flash reading of 53.6
and well above the 50-mark that separates expansion from
contraction for a sixth straight month.
"The Japanese services economy signalled that demand
conditions had improved at a stronger rate during February,"
said Usamah Bhatti, economist at S&P Global Market Intelligence.
The subindexes showed new orders and overseas demand grew
for a sixth month, with new orders rising at the fastest pace
since May 2022.
Outstanding business saw the sharpest rate of growth in
five-and-a-half years in February due to the expansion in
demand, Bhatti said.
The survey also showed that business confidence for the
coming year improved to a four-month high on the back of
stronger economic conditions and the receding impact of COVID,
citing expectations for increasing demand in the travel
industry.
Japan has seen a recovery in tourism after the government
scrapped COVID-19 curbs in October, with data from the national
tourism agency showing overseas visitors climbed to about 1.5
million in January.
"Japanese private sector firms remained strongly optimistic
that activity would continue to expand over the coming 12 months
as the persistent weights of the pandemic and inflation on the
economy showed sustained signals of easing," Bhatti said.
In the service-sector survey, the subindex for employment
swung to marginal growth from contraction in the previous month
as firms took on new recruits to meet higher demand.
The composite PMI, which combines the manufacturing and
services figures, rose to 51.1 in February from the previous
month's 50.7, staying above the break-even 50 mark for two
consecutive months.
(Reporting by Eimi Yamamitsu; Editing by Sam Holmes)
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