Japan's services sector nearly stagnates in July amid rising inflation

Japan's services sector activity almost completely stagnated in July as rising inflation and growing economic uncertainty weighed on sentiment, while firms also said a boost from the lifting of COVID-19 pandemic curbs had faded.

The marked slowdown in activity in the sector offered an early warning sign that Japan's economy may struggle to stage a convincing recovery, a worrying trend for a country greatly exposed to fluctuations in global growth.

The final au Jibun Bank Japan Services purchasing managers' index (PMI) slumped to a seasonally adjusted 50.3, marking the lowest reading since March.

The figure showed activity came in