The final figure was slightly lower than the flash reading of 52.4, but stayed above the 50-mark that separates expansion from contraction for a fifth straight month.
“The start of 2023 saw a continuation of the recent positive news in the Japanese service sector as the economy continues to recover from the pandemic,” said Andrew Harker, economics director at the pollster S&P Global Market Intelligence.
The subindexes for new orders and demand from overseas customers showed growth for a fifth month, thanks to Japan’s relaxation of border controls, which boosted monthly visitors to the country above one million in December for the first time since February 2020. The pace of overseas demand, however, eased off slightly last month.
Service-sector firms were also cheered by the National Travel Discount Programme, a government-funded campaign that subsidies domestic trip expenses, Harker said.
On the flip side, the rate of input price inflation…
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