The data is a disappointment. Expectations were low and even those were not hit. And the December result came in blow the November result. The new Bank of Japan Governor will not be moving too quickly to dial back accommodation if data persists like this.
The Tertiary Industry Index (AKA the Index of Tertiary Industry Activity) indicates the performance of the domestic service sector in Japan such as information and communication, electricity, gas heat and water, services, transport, wholesale and retail trade, finance and insurance, and welfare. Its one of the three main indicators used to track economic activity in Japan, along with Industrial Production and Retail Sales.
In a nutshell it measures the total value of services purchased by Japanese businesses over the month and is often touted as a leading index to the health or otherwise of the Japanese economy. An increase in the Index generally is suggestive pf an expansion in the service sector, which can contribute to economic growth, while a decrease suggests a contraction.The service sector accounts for around 70% of Japan's GDP .
The data point is released by the Ministry of Economy, Trade and Industry each month.
