JP: Tertiary Index


Mon Mar 12 23:30:00 CDT 2018

Actual Previous Revised
Month over Month -0.6% -0.2% 0.0%
Year over Year 1.6% 1.1% 1.3%

Highlights
Japan's Index of Tertiary Industry Activity fell 0.6 percent (seasonally adjusted) on the month in January after no change in December. 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 drop in their activity of 0.1 percent on the the month, while those providing services to businesses recorded a bigger fall of 0.8 percent.

The original index advanced 1.6 percent on the year in January, picking up from 1.3 percent in December.

The decline in the Tertiary Index in January contrasts with the Nikkei Services PMI survey, which indicated that conditions in the sector improved on the month. The PMI survey, however, showed a fall in the headline index in February.

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.