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Japan's Manufacturing Contracts Again as Services Thrive

1/25/2025

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Summary

Story summary

Japan's manufacturing sector faced a tough January, contracting for the seventh consecutive month with a PMI of 48.8, marking a ten-month low. Meanwhile, the services sector thrived, rising to 52.7. This pivotal shift hints at an evolving economy, as the Bank of Japan weighs interest rate hikes fueled by robust wage growth.

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Story summary

Japan's manufacturing sector faced a tough January, contracting for the seventh consecutive month with a PMI of 48.8, marking a ten-month low. Meanwhile, the services sector thrived, rising to 52.7. This pivotal shift hints at an evolving economy, as the Bank of Japan weighs interest rate hikes fueled by robust wage growth.