Japan Services PMI Hits Highest Since May 2024

Japan’s S&P Global Services PMI inched up to 53.8 in February 2026 from 53.7 in the previous month, a flash figure showed. The latest result marked the highest figure since May 2024, with new orders rising at the fastest pace in nearly two years. Employment continued to expand, though hiring slowed slightly from the prior month. On the price front, service providers reported a sharper increase in selling prices than manufacturers, underscoring mounting cost pressures across the sector.

Japan’s S&P Global Services PMI rose to 53.7 in January 2026, surpassing the flash estimate of 53.4 and December’s 51.6. The latest result marked a tenth consecutive month of expansion in services activity and the fastest pace since February 2025. Growth was fueled by stronger new orders, the quickest in four months, supported by marketing successes, new client wins, and firmer foreign demand. At the same time, backlogs accumulated at the sharpest rate since last September, prompting firms to expand capacity through hiring. Although job creation slowed from December, employment remained solid. On the price front, input cost inflation eased to its lowest in nearly two years, but selling price inflation climbed to a seven-month high as firms passed on costs. Looking ahead, business confidence weakened to its lowest since July, reflecting concerns over global conditions, softer tourism demand, and persistent labor shortages.

Japan’s S&P Global Services PMI rose to 53.4 in January 2026 from 51.6 in the previous month, marking the highest reading since July, flash data showed. The latest result also signaled a tenth consecutive month of expansion in services activity, with new orders growing at the fastest pace in four months and overseas demand continuing to strengthen. Also, employment increased at a solid pace, supported by a notable rise in outstanding business at services firms. On the pricing front, cost pressures eased as input price inflation softened, though companies continued to raise their selling prices at a faster rate.