AI Data Insight
Japan's February au Jibun Bank Services PMI recorded 53.8, beating the previous reading of 53.7 and marking a new high since May 2024, indicating the service sector has remained in expansion for 11 consecutive months. Benefiting from effective marketing and recovering overseas demand, the growth rate of new orders hit its fastest pace in nearly two years; however, labor shortages led to a significant increase in backlogs of work. Rising input costs prompted firms to accelerate selling price hikes, and the market expects that if service inflation persists, the Bank of Japan (BOJ) may raise interest rates further around mid-year.