Japan's Factory Activity Contracts Amid Service Growth

In August, India's economic activity experienced a slight decline, with the composite PMI falling to 60.5 from 60.7 in July due to a deceleration in manufacturing output and new orders, though it remained well above the growth threshold of 50. Japan's factory activity contracted for the second consecutive month, with the manufacturing PMI rising slightly to 49.5 in August from 49.1 in July, still below the growth threshold. Conversely, Japan’s services sector continued to expand, with the services PMI increasing to 54.0 from 53.7, leading to a composite PMI rise to 53.0. Both countries face challenges with inflation and labor constraints, but their service sectors show promising signs of growth.