Japan’s S&P Global Services PMI Business Activity Index stood at 52.2 in June 2026, higher than the flash data of 51.8 and 50.0 in the prior month. The latest reading marked the 14th expansion in the past 15 months, although the pace of growth remained modest and slightly below the average over the past year. New business rose at one of the fastest rates in nearly two years, driven by stronger domestic demand, even as export orders fell sharply. Firms expanded hiring, with employment growth accelerating, while backlogs increased at the quickest pace since March, underscoring capacity pressures. Input cost inflation surged to a four-year high on higher oil, energy, food, and labor costs, yet selling price hikes slowed compared with May, hinting at softer pass-through. Finally, business confidence stayed subdued, among the weakest since the pandemic, as companies flagged uncertainty from Middle East tensions, persistent cost burdens, and labor shortages as key risks to the outlook. source: S&P Global

Services PMI in Japan increased to 52.20 points in June from 50 points in May of 2026. Services PMI in Japan averaged 50.64 points from 2013 until 2026, reaching an all time high of 55.90 points in May of 2023 and a record low of 21.50 points in April of 2020. This page provides the latest reported value for - Japan Services PMI - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Services PMI in Japan increased to 52.20 points in June from 50 points in May of 2026. Services PMI in Japan is expected to be 50.80 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Japan Services PMI is projected to trend around 51.30 points in 2027 and 52.00 points in 2028, according to our econometric models.



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Japan Services PMI
The S&P Global Japan Services PMI is a monthly indicator of economic activity in Japan’s service sector, based on survey responses from around 400 companies across industries such as transport, finance, communication, real estate, and business services (excluding retail). Respondents report changes relative to the previous month, and results are presented as diffusion indices, ranging from 0 to 100. An index above 50 signals growth, while below 50 indicates contraction. The main metric is the Services Business Activity Index, reflecting changes in business activity volume and serving as the headline figure. While sometimes called the "Services PMI," it is not directly comparable to the headline Manufacturing PMI, but aligns more closely with the Manufacturing Output Index.

News Stream
Japan Services PMI Revised Higher
Japan’s S&P Global Services PMI Business Activity Index stood at 52.2 in June 2026, higher than the flash data of 51.8 and 50.0 in the prior month. The latest reading marked the 14th expansion in the past 15 months, although the pace of growth remained modest and slightly below the average over the past year. New business rose at one of the fastest rates in nearly two years, driven by stronger domestic demand, even as export orders fell sharply. Firms expanded hiring, with employment growth accelerating, while backlogs increased at the quickest pace since March, underscoring capacity pressures. Input cost inflation surged to a four-year high on higher oil, energy, food, and labor costs, yet selling price hikes slowed compared with May, hinting at softer pass-through. Finally, business confidence stayed subdued, among the weakest since the pandemic, as companies flagged uncertainty from Middle East tensions, persistent cost burdens, and labor shortages as key risks to the outlook.
2026-07-03
Japan Services Sector Returns to Growth in June
Japan’s S&P Global Flash Services PMI Business Activity Index rose to 51.8 in June 2026 from 50.0 in the previous month, flash estimates showed. The reading signaled a renewed expansion in the services sector after activity stagnated in the previous month, supported by stronger demand conditions, with service providers reporting a firmer increase in new business. Rising workloads led to a further accumulation of outstanding business, encouraging firms to increase staffing levels. However, despite the improvement in domestic demand, foreign sales remained under pressure, as service firms continued to report a marked decline in export business. At the same time, elevated cost pressures persisted, prompting businesses to pass higher expenses on to clients through further price increases. Looking ahead, optimism softened, with firms citing concerns over inflation, labor shortages, and supply-chain disruptions linked to the Middle East conflict.
2026-06-23
Stagnation in Japan Service Sector Confirmed
Japan’s S&P Global Services PMI was at 50.0 in May 2026, aligning with the preliminary estimate and marking its lowest level since March 2025. The reading ended a 13-month run of expansion, pointing to stagnation in the services sector. Growth in new orders slowed to its weakest pace since the current cycle began near two years ago. Export orders fell at the fastest rate in more than four years, underscoring softer overseas appetite. Employment growth eased to a nine-month low, while backlogs of work rose modestly. Cost pressures mounted, with input prices increasing the most in 43 months, driven by higher fuel, energy, and raw material costs amid supplier hikes linked to Middle East tensions. Rising labor expenses added to the squeeze, prompting firms to raise selling prices at a near-record pace. Lastly, sentiment improved for a second month but stayed below post-pandemic norms, with companies citing geopolitical risks, elevated costs, and demographic headwinds from aging population.
2026-06-03