JP: Tertiary Index


Thu Nov 09 22:30:00 CST 2017

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

Highlights
Japan's Index of Tertiary Industry Activity fell 0.2 percent seasonally adjusted on the month in September, matching the decline seen in August. Declines in the component index for six of the eleven main industry groups within the services sector outweighed increases in the index for the other five groups. Industries providing services to consumers recorded an increase in their activity of 0.8 percent on the the month, but this was outweighed by a decline of 0.7 percent for those providing services to businesses.

The original index advanced 0.6 percent on the year in September, also unchanged from August.

The fall in the Tertiary Index is broadly consistent with the Nikkei Services PMI survey, which also indicated that conditions in the sector weakened in September. The PMI survey, however, showed a strong rebound in service sector activity in October, with the headline index surging to its highest level since mid-2015.

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.