I just saw the Japanese tertiary sector data for February and it's not great. The index fell by 0.4% compared to the previous month, pretty much what I feared when reading the forecasts. At least it performed better than what analysts expected, who had predicted a 0.5% decline, but still, the trend is not encouraging.



What surprised me the most is the comparison with January: the Japanese tertiary sector had a significant rebound with +1.70%, so the change in direction is quite marked. It means that economic activity in the tertiary sector is fluctuating quite a bit, which is not a good sign of stability.

In short, the Japanese tertiary sector continues to send mixed signals. Keep an eye on upcoming data to see if this is just a correction or if a more negative trend is starting.
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