Japan service sector shrinks at fastest pace in 5 months, firms shed staff

Companies less optimistic that activity would rise over the next year, with positive sentiment reaching a five-month low: PMI survey.

Japan's services sector activity contracted at the fastest pace in five months in January in a sign businesses faced pressure from a record surge in new coronavirus infections due to the Omicron variant.

The world's third-largest economy has seen COVID-19 cases surge in recent weeks, forcing the government to roll out tougher curbs across much of the country in response to a rise in hospital admissions driven by Omicron.

The final au Jibun Bank Japan Services Purchasing Managers' Index (PMI) slumped to a seasonally adjusted 47.6 from the prior month's 52.1 and a 48.8 flash reading.

That marked the fastest decline in business