Japan’s service sector experienced the fastest contraction in March since the financial crisis 2008-2009, as Global demand has been hit hard by the Corona virus pandemic. The Bank of Japan Services PMI reading for March fell sharply to 33.8 from 46.8 in February, the lowest level since February 2009.
Japan’s service sector is declining
New business fell to its lowest level in eight years, while business expectations between service sector companies shrank at the fastest pace in a decade, closing business and canceling events at customer ends increases pressure on the service sector.
Employment in the sector also declined to negative due to layoffs due to a decrease in commercial activity . It was the first time that employment in the service industry had fallen since 2016.
The Composite PMI in Japan, which includes both manufacturing and service sectors, fell to 36.2 in March from a final reading of 47 in the previous month. This was the lowest reading of the Composite PMI in 11 years.
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