In May, Japan's service sector sentiment deteriorated sharply, reaching its lowest point in nearly two years, according to government data released on Monday. The decline, attributed to increased fuel and food costs amid a weakened yen, underscores the fragile state of consumer spending.
The sentiment index for service-sector firms such as taxi operators and restaurants dropped to 45.7, down 1.7 points from the previous month and marking its lowest level since August 2022.
Additionally, the gauge of firms' economic outlook fell for the third consecutive month to 46.3, its weakest since July 2022. The "economy watchers" survey, which polls firms closely linked to consumer activity, is closely monitored as a leading indicator for household spending and broader economic health.
Paraphrasing text from "Reuters" all rights reserved by the original author.
