JP: Tertiary Index


Mon Dec 11 23:30:00 CST 2017

Actual Previous
Month over Month 0.3% -0.2%
Year over Year 1.1% 0.6%

Highlights
Japan's Index of Tertiary Industry Activity rose 0.3 percent seasonally adjusted on the month in October after falling 0.2 percent in September. Increases in the component index for six of the eleven main industry groups within the services sector outweighed declines in the index for the other five groups. Industries providing services to consumers recorded a drop in their activity of 0.6 percent on the the month, but this was outweighed by an increase of 1.0 percent for those providing services to businesses.

The original index advanced 1.1 percent on the year in October, up from 0.6 percent in September.

The advance in the Tertiary Index is broadly consistent with the Nikkei Services PMI survey, which also indicated that conditions in the sector strengthened in October. The PMI survey, however, showed renewed weakness in service sector activity in October, with the headline index falling sharply from its September level.

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.