Japan Services PMI Lowest in 14 Months

Japan’s S&P Global Services PMI edged down to 50.0 in May 2026 from a final 51.0 in the previous month, a preliminary reading showed. It marked the lowest figure since March 2025, pointing to a stagnation in the service sector.

Japan’s S&P Global Services PMI was revised slightly lower to 51.0 in April 2026 from 51.2 in the flash reading and down from March’s final 53.4, signalling a thirteenth successive month of expansion. However, the latest reading remained the lowest figure since May 2025, as new orders grew at the slowest pace since last October, while foreign sales declined for the first time in five months, albeit modestly. Employment increased modestly, while backlogs of work rose at the slowest pace in 14 months. On the price front, input cost inflation accelerated to a 12-month high, mainly due to higher fuel prices. As a result, firms passed the higher costs on to their clients, with selling prices rising at the fastest pace since the survey began in September 2007. Looking ahead, business sentiment improved slightly amid ongoing uncertainty over the Middle East conflict and its impact on costs and customer demand.

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.