Japan Services Sentiment Rises to 5-Month High

2026-08-10 05:10 By Farida Husna 1 min. read

Japan’s services sector sentiment index rose to 45.7 in July 2026 from 44.0 in the previous month, reaching its highest level since February and exceeding market expectations of 44.0.

The latest reading marked the third consecutive month of improvement, supported by stronger sentiment among household-related businesses, particularly those in the food and beverage sector.

Corporate confidence also strengthened, led mainly by the non-manufacturing sector, while labor market conditions continued to firm.

Meanwhile, the economic outlook index, which measures business expectations for the months ahead, edged up to 45.8 from 45.7 in June, hitting a five-month high and rising for a third straight month.

The improvement suggested businesses expect economic conditions to stabilize despite lingering downward pressure from the Middle East conflict.



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Japan Services Sentiment Rises to 5-Month High
Japan’s services sector sentiment index rose to 45.7 in July 2026 from 44.0 in the previous month, reaching its highest level since February and exceeding market expectations of 44.0. The latest reading marked the third consecutive month of improvement, supported by stronger sentiment among household-related businesses, particularly those in the food and beverage sector. Corporate confidence also strengthened, led mainly by the non-manufacturing sector, while labor market conditions continued to firm. Meanwhile, the economic outlook index, which measures business expectations for the months ahead, edged up to 45.8 from 45.7 in June, hitting a five-month high and rising for a third straight month. The improvement suggested businesses expect economic conditions to stabilize despite lingering downward pressure from the Middle East conflict.
2026-08-10
Japan Services Sentiment Hits 4-Month High
Japan’s services sector sentiment index edged up to 44.0 in June 2026 from 43.6 in the previous month, marking its highest level since February and pointing to a continued improvement in business confidence. While sentiment among household-related businesses remained subdued, stronger conditions in the broader services sector helped lift the overall index. Corporate confidence also improved, driven mainly by strength in the non-manufacturing sector, with labor market conditions continuing to firm. Looking ahead, the economic outlook index, which measures expectations for the months ahead, jumped to 45.7 from 40.7 in May, the highest reading in four months. The sharp increase suggests businesses expect economic conditions to stabilize as concerns over the impact of the Middle East conflict eased.
2026-07-08
Japan Services Sentiment Rises to 3-Month Peak
Japan’s services sector sentiment index rose to 43.6 in May 2026 from 40.8 in the previous month, reaching its highest level since February and signaling an improvement in business confidence. The gain was driven mainly by stronger household-related activity, particularly in the food and beverage sector, as consumer demand remained relatively resilient. Corporate sentiment also improved, supported largely by strength in manufacturing-related activity, while labor market conditions continued to firm, contributing to the overall rise in confidence. Looking ahead, the economic outlook index, which gauges sentiment for the coming months, climbed to 43.8 from 40.8 in April, marking its highest reading in three months. The improvement suggests businesses expect conditions to stabilize despite lingering challenges from the Middle East conflict.
2026-06-08