The Japanese economy shrank less in September than in August, despite the fact that industry is also shrinking. This was shown on Friday by preliminary figures from Markit.
The index measuring the activity of the country’s services sector reached 47.4 in September, compared with 42.9 in August. However, the Purchasing Managers Index for Japanese industry decreased in September from 51.0 in August to 48.1.
The composite index thus increased from 45.5 to 47.7. An index position greater than 50 indicates growth, while less than 50 means contraction.
Consumer prices in Japan fell in August. This was shown by government figures on Friday. On a monthly basis, prices fell by 0.2 percent. On an annual basis, there was a decrease of 0.4 percent.
Core prices, i.e. excluding the prices for fresh food and energy, remained under pressure on an annual basis with a decrease of 0.5%, while the price level without fresh food remained stable this time. The Japanese central bank is still aiming for an inflation rate of 2%.