Japan’s service activity expanded at a record pace in April, a private survey showed on Monday, driven by a boost in consumer spending following the end of COVID-19 pandemic curbs.
The au Jibun Bank Japan services purchasing managers’ index (PMI) was 55.4 in April, up from 54.9 in March and well above the 50-mark that separates growth from contraction for the seventh consecutive month.
“Strong increases in travel, leisure and tourism spending underpinned another month of swift recovery for the Japanese economy as the impact of COVID-19 continued to fade,” said Tim Moore, economics director at S&P Global Market Intelligence.
“There were also many reports citing a boost to sales from the recovery in international tourist arrivals and subsequent improvement in new business from abroad,” he said.
Japan lifted its severe COVID-related border control restrictions on Saturday, allowing passengers to enter the country without proof of vaccination or a negative test result.
The study also revealed that new orders increased at a record pace in April, with the swift rebound of travel and tourism spending being the primary reason.
