JP: Tertiary Index


Mon Jan 15 22:30:00 CST 2018

Actual Previous Revised
Month over Month 1.1% 0.3% 0.2%
Year over Year 1.7% 1.1% 0.9%

Highlights
Japan's Index of Tertiary Industry Activity rose 1.1 percent seasonally adjusted on the month in November after increasing a revised 0.2 percent in October. Increases in the component index for nine of the eleven main industry groups within the services sector easily outweighed declines in the index for the other two groups. Industries providing services to consumers recorded an increase in their activity of 1.6 percent on the the month, accompanied by an increase of 1.1 percent for those providing services to businesses.

The original index advanced 1.7 percent on the year in November, accelerating from a revised 1.1 percent in October.

Stronger growth in the Tertiary Index in November contrasts with the Nikkei Services PMI survey, which indicated that conditions in the sector weakened that month after accelerating sharply in October. The PMI survey showed a further modest fall in the headline index in December.

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.