Japan Services PMI Falls to 11-Month Low

Japan’s S&P Global Services PMI slipped to 51.2 in April 2026 from a final 53.4 in the previous month, a preliminary reading showed. It marked the lowest figure since May 2025, pointing to a moderation in service sector growth. New orders continued to rise but at the slowest pace since October 2025, while overseas demand declined for the first time in five months, suggesting softer external conditions. On the price front, input costs for service providers increased further, though the pace of inflation was notably slower than that seen among goods producers, indicating relatively milder cost pressures within the services sector.

Japan’s S&P Global Services PMI rose to 53.4 in March 2026, exceeding the flash estimate of 53.0 and market expectations of 52.8, though easing from February’s 21-month high of 53.8. The latest result signaled ongoing expansion in the service sector, with new business rising for a 21st straight month, albeit at a softer pace. Export demand improved, with new orders growing at one of the fastest rates in ten months, though still modest. Firms continued hiring to expand capacity, but job creation slowed to its weakest since October. Backlogs of work rose slightly, diverging from the long-term trend of declining outstanding business. Input cost inflation accelerated to its strongest in nearly a year, driven by higher raw material, energy, and fuel costs linked to Middle East tensions. Output price growth eased from February but remained elevated. Lastly, business sentiment weakened, falling to its lowest since the pandemic amid rising geopolitical uncertainty.

Japan’s S&P Global Services PMI fell to 52.8 in March 2026 from a final 53.8 in the previous month, according to preliminary data. The latest reading marked the weakest since December, partly reflecting concerns over the ongoing conflict in the Middle East. New orders expanded at the slowest pace since October, with foreign demand rising only marginally despite a slight improvement. Employment growth also eased during the month. On the price front, input cost inflation accelerated, while output charges increased at a softer pace. Meanwhile, business confidence weakened, weighed by heightened geopolitical risks and uncertainty.