Japan Services Growth Revised Upward

2026-09-03 01:18 By Farida Husna 1 min. read

Japan’s S&P Global Services PMI Business Activity Index rose to 52.5 in August 2026 from the flash reading of 52.3 and July’s 51.2.

This marked the strongest pace since March, as new orders rose at a faster pace after hitting a 25-month low in July, with growth slightly above the 2026 average, supported mainly by firmer domestic demand.

In contrast, export demand continued to decline.

Job creation slowed to its weakest pace in a year and remained marginal.

Outstanding business increased only slightly, with the rate of accumulation little changed from July’s 17-month low.

Meanwhile, input costs continued to rise substantially, although the pace eased slightly amid persistent cost pressures.

Selling-price inflation reached its second-fastest pace since the survey began in late 2007, surpassed only in April 2014 following a national consumption-tax hike.

Confidence improved modestly, lifted by planned expansion, AI-related efficiency gains and expectations of stronger customer numbers.



News Stream
Japan Services Growth Revised Upward
Japan’s S&P Global Services PMI Business Activity Index rose to 52.5 in August 2026 from the flash reading of 52.3 and July’s 51.2. This marked the strongest pace since March, as new orders rose at a faster pace after hitting a 25-month low in July, with growth slightly above the 2026 average, supported mainly by firmer domestic demand. In contrast, export demand continued to decline. Job creation slowed to its weakest pace in a year and remained marginal. Outstanding business increased only slightly, with the rate of accumulation little changed from July’s 17-month low. Meanwhile, input costs continued to rise substantially, although the pace eased slightly amid persistent cost pressures. Selling-price inflation reached its second-fastest pace since the survey began in late 2007, surpassed only in April 2014 following a national consumption-tax hike. Confidence improved modestly, lifted by planned expansion, AI-related efficiency gains and expectations of stronger customer numbers.
2026-09-03
Japan Services Growth at 5-Month High
Japan’s S&P Global Services PMI Business Activity Index rose to 52.3 in August 2026 from a final 51.2 in the previous month, a preliminary estimate showed. The latest reading marked the third consecutive month of expansion in the services sector and the fastest pace since March, supported by a stronger increase in new business, which grew at the second-fastest rate since February. However, international demand weakened, with service providers reporting a steeper and marked decline in new export business. Employment growth also moderated, with payrolls rising only marginally at the softest pace in the past year. Meanwhile, services firms remained less optimistic than manufacturers, amid elevated cost pressures and concerns over the economic impact of the ongoing Middle East conflict.
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Japan’s S&P Global Services PMI Business Activity Index was revised lower to 51.2 in July 2026 from 51.9 in the preliminary estimate and after a final reading of 52.2 in the previous month. It was the second consecutive month of expansion in the services sector, though growth slowed as new business expansion eased to a 25-month low. Employment also increased more slowly amid signs of easing capacity pressures. Meanwhile, backlogs of work increased only fractionally, marking the weakest increase in 17 months. At the same time, foreign demand declined for the fourth straight month, though the pace of decline eased to the weakest since April. On the price front, input cost inflation accelerated to near June's four-year record, while firms raised output charges at the second-fastest pace on record, reflecting continued efforts to pass higher costs on to customers. Looking ahead, business confidence remained positive but was among the lowest levels recorded since the pandemic.
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