Japan March tertiary industry index -4.2% vs -3.7% m/m expected

Latest data released by Japan’s METI – 18 May 2020

  • Prior -0.5%; revised to -0.7%

Slight delay in the release by the source. The statistic basically measures the total value of services purchased by Japanese businesses over the month.
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Given the sluggish Q1 economic figures, the drop in services activity seen above isn’t much of a surprise considering the impact of the virus outbreak domestically and globally.

That said, April and Q2 conditions should be much worse given state of emergency measures that were enacted by the Japanese government – especially on key prefectures like Tokyo and Osaka, which account for a big portion of the country’s economic activity.