The recession in the world's two largest economies appears to be abating.
Bloomberg reports that in June, US services industries shrank at the slowest pace in nine months.
The Institute for Supply Management’s index of non- manufacturing businesses, which make up almost 90 percent of the economy, rose more than forecast to 47 from 44 in May, according to data from the Tempe, Arizona-based group. Readings less than 50 signal contraction...
The ISM non-manufacturing industries index of employment rose to 43.4 from 39 the prior month, and its gauge of new orders increased to 48.6 from 44.4.
Meanwhile, the Bank of Japan reported on Monday that it is more optimistic about the economy.
The Bank of Japan became more optimistic about the economy in all nine regions for the first time since January 2006 and Governor Masaaki Shirakawa said exports and industrial production are recovering.
"The pace of economic deterioration was slower in all regions," the central bank said in a quarterly report in Tokyo today. "Most regions, however, emphasized that their economies continued to be in a severe situation."
Composite economic indicators support the improved assessment.
The coincident index climbed to 86.9 in May from 86 in April, the Cabinet Office said today in Tokyo, matching the median estimate of economists surveyed by Bloomberg News. The gauge, a composite of 11 indicators including factory production and retail sales, rose for a second month...
The leading index, a gauge of future economic activity, rose to 77 from 76.2 in April.
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