03.09.202500:48:27UTC+00Japan Services PMI Revised Upward

In August 2025, the S&P Global Japan Services PMI registered at 53.1, exceeding the preliminary estimate of 52.7 but slightly down from July's figure of 53.6. This reflected the fifth consecutive month of expansion in Japan's services sector, primarily propelled by a rapid increase in new orders not seen since February. In contrast, foreign demand continued to weaken, with new export business experiencing its sharpest decline in over three years. The sector also experienced a slight drop in staffing levels, the first since September 2023, following a period of stagnation in July, while backlogs grew at the fastest rate in more than two years. Regarding pricing, input cost inflation rose from July’s 17-month low. However, competitive market dynamics restricted firms' ability to adjust pricing, resulting in output charge growth at its slowest since October 2024. Nevertheless, business confidence saw an improvement from July's three-month low, driven by plans for expansion and optimism over stronger domestic and international demand.