Japan’s services sector returns to growth after contraction month

Japan’s services sector returned to growth last month after contracting in October, according to a survey of purchasing managers in the sector by Jibun Bank.

The survey showed Japan’s services sector purchasing managers’ index (PMI) rose to 50.5 in November from 49.7 in the previous month. A reading above 50 indicates economic activity is expanding, while a reading below that indicates contraction.

The growth rate of new business in the sector exceeded the long-term average but was unchanged from the previous month. Firms said increased confidence and business growth helped boost backlogs of orders, according to the German news agency.