JP: Tertiary Index

Highlights
Japan's Index of Tertiary Industry Activity was flat on the month in June after declining 0.1 percent in May. Increases in the component index for four of the eleven main industry groups within the services sector were offset by declines in the index for the other seven groups. Industries providing services to consumers recorded a decline in their activity of 0.4 percent on the the month, while those providing services to businesses recorded a decline of 0.1 percent.

The original index advanced 1.1 percent on the year in June, slowing from an increase of 1.5 percent in May.

The Nikkei Services PMI survey for July, published earlier in the month, indicated that conditions in the sector weakened relative to June.

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.