JP: Tertiary Index


Thu Feb 08 22:30:00 CST 2018

Actual Previous Revised
Month over Month -0.2% 1.1%
Year over Year 1.1% 1.7% 1.6%

Highlights
Japan's Index of Tertiary Industry Activity fell 0.2 percent (seasonally adjusted) on the month in December after advancing 1.1 percent in November. 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 a dop in their activity of 1.0 percent on the the month, offset slightly by an increase of 0.1 percent for those providing services to businesses.

The original index advanced 1.1 percent on the year in December, decelerating from a revised 1.6 percent in November.

The small fall in the Tertiary Index in December is broadly in line with the Nikkei Services PMI survey, which indicated that conditions in the sector were little changed on the month. The PMI survey, however, showed a solid rebound in the headline index in January.

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.