Japan Tertiary Industry Activity Index

Japan's Tertiary Industry Activity Index measures monthly output across much of the service sector, including areas such as wholesale and retail trade, transport, information and communications, real estate, finance, health care and leisure-related services. It is published by Japan's Ministry of Economy, Trade and Industry (METI) to provide a broad view of activity outside manufacturing and construction. The headline is commonly followed as a seasonally adjusted monthly index and monthly percentage change. METI compiles the measure from industry-level service activity series using value-added weights.

Because services make up a large share of Japan's economy, the release can add context on domestic growth momentum and may influence expectations for Japanese economic conditions and monetary policy.

JPY

Unexpected results can affect views on Japan's growth outlook and, in some circumstances, expectations for Bank of Japan policy.

Japanese government bonds

The release can contribute to changing assessments of economic momentum and the policy outlook.

Moderate. The index is released with a lag, can be revised, and its monthly movement may be affected by seasonal adjustment or uneven performance across individual service industries.

• Check whether the reported change is seasonally adjusted and whether it is measured month over month or year over year.
• Review the industry contributions, as a broad-based move can carry a different message from a change driven by one sector.
• Compare the result with Japanese industrial production, household spending and GDP indicators.
• Allow for revisions and release lags when using the index to assess current economic conditions.

Educational guidance only — never a trading signal or recommendation.