JP: Tertiary Index


Thu Jun 08 23:30:00 CDT 2017

Actual Previous
Month over Month 1.2% -0.2%
Year over Year 0.6% 0.3%

Highlights
Japan's Index of Tertiary Industry Activity rose 1.2 percent on the month in April after declining 0.2 percent in March. An increase in the component index for eight of the eleven main industry groups within the services sector outweighed declines in the index for the other three groups. Industries providing services to consumers recorded an increase in their activity of 1.8 percent on the the month, while those providing services to businesses recorded a gain of 0.7 percent.

The original index advanced 0.6 percent on the year in April, up from an increase of 0.3 percent in March.

The month-on-month increase in the index in April is the strongest since June 2016. The Nikkei Services PMI survey also pointed to solid conditions in the sector in April, albeit somewhat weaker than in March, with the most recent data from the survey showing an increase in its headline activity index in May.

Definition
The Tertiary Index measures activity in the service sector and is a key indicator of domestic activity. The index incorporates data wholesale and retail trade, financial services, health care, real estate, leisure and utilities. The report excludes industrial manufacturing sectors that tend to be influenced by foreign demand.

Description
The tertiary index measures output by the service sector. Because this report excludes manufacturing the index is considered a key measure of domestic activity. The index incorporates data from firms involved with wholesale and retail trade, financial services, health care, real estate, leisure and utilities. The report excludes industrial manufacturing sectors that tend to be influenced by foreign demand.