Tertiary sector posts 0.5 percent decrease in Japan

Activity in the tertiary sector in Japan posted a 0.5 percent decline in September, according to statistics released by the Ministry of Economy, Trade and Industry on Tuesday.

The statistics are further evidence that despite the positive signs coming from the manufacturing sector, Japan is still a long way from economic recovery.

The main industries that caused the decrease we information and communications and finance and insurance, which fell 4.4 percent and 2.8 percent respectively.

Some areas of the tertiary sector did do quite well, however, with scientific research, professional and technical services posting a 2.9 percent rise in activity, transport and postal activities rising by 1.9 percent and accommodations, eating and drinking services rising by 1.8 percent.

News of the overall decline will be met with disappointment, after the sector posted a 0.3 percent increase in activity for the third consecutive month in August.

The results come amid concerns that Japan may be heading for deep deflation, after the domestic demand deflator, which measures the price of Japanese domestic goods, fell by 2.6 percent when compared to a year earlier -- the biggest drop in half a century.