Global| Oct 19 2009So Far, So Good: Japan Service Sector Advance Again
Summary
Japan’s Tertiary index (service sector index) rose in August for the third month in a row. The chart above puts these increases in perspective. While a nice, stable uptrend is emerging, the pace of the rise is relatively moderate; yet [...]
Japan’s Tertiary index (service sector index) rose in August
for the third month in a row. The chart above puts these increases in
perspective. While a nice, stable uptrend is emerging, the pace of the
rise is relatively moderate; yet the level of the index is well short
of the past cycle peak.
The mining/MFG index fell extremely sharply in the depth of
the recession and while it has had a very sharp bounce back, it is too
soon to tell if the bounce-back will be complete. At a level of 83.9
the mining/MFG index is up sharply from its low of 69.5 but is still
‘light-years’ away from the past peak at 110.1.
The rebound in the various sector indices is a good sign for
Japan’s beleaguered economy. Even so these bounces have a long way to
go to restore Japan to its precession levels of activity.
| Up to date Japan Industry Survey | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Recent Months | Moving Averages | Extremes; Range | |||||||
| Aug-2009 | Jul-2009 | Jun-2009 | 3-Mo | 6-Mo | 12-Mo | Max | Min | %-Tile | |
| Mining and MFG | 83.9 | 82.6 | 80.9 | 82.5 | 78.7 | 83.4 | 110.1 | 69.5 | 35.5% |
| Tertiary | 97.1 | 96.8 | 96.1 | 96.7 | 96.1 | 97.8 | 103.5 | 89.1 | 55.6% |
| Ranges, Max, Min since 1993 | |||||||||
Robert Brusca
AuthorMore in Author Profile »Robert A. Brusca is Chief Economist of Fact and Opinion Economics, a consulting firm he founded in Manhattan. He has been an economist on Wall Street for over 25 years. He has visited central banking and large institutional clients in over 30 countries in his career as an economist. Mr. Brusca was a Divisional Research Chief at the Federal Reserve Bank of NY (Chief of the International Financial markets Division), a Fed Watcher at Irving Trust and Chief Economist at Nikko Securities International. He is widely quoted and appears in various media. Mr. Brusca holds an MA and Ph.D. in economics from Michigan State University and a BA in Economics from the University of Michigan. His research pursues his strong interests in non aligned policy economics as well as international economics. FAO Economics’ research targets investors to assist them in making better investment decisions in stocks, bonds and in a variety of international assets. The company does not manage money and has no conflicts in giving economic advice.
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