Financial News: Japan Services PMI Improves To 52.5 - S&P

Japan Services PMI Improves To 52.5 - S&P Global

(RTTNews) - The services sector in Japan continued to expand in August, and at a faster pace, the latest survey from S&P Global revealed on Thursday with a Purchasing Managers Index score of 52.5.

That's up from 51.2 in July, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

Greater amounts of new work, public sector projects and a higher volume of client enquiries had supported the latest upturn in activity, according to panelists. Total new order growth picked up from July's 25-month low in August, rising at a rate that was slightly stronger than the average seen in 2026 so far.

Underlying data suggested that the upturn was largely driven by firmer domestic demand, as new export business continued to decline during August and at a sharp pace.

The survey also showed that the composite index improved to 53.5 in August from 52.7 in July.

The rate of growth was the steepest recorded since before the outbreak of war in the Middle East in February. Although the expansion continued to be led by the manufacturing industry, which saw another sharp upturn in output, service sector growth improved in August.

Composite new business also rose at a solid and accelerated pace, with the upturn among the quickest seen over the past three years. Overall employment across Japan meanwhile continued to rise modestly amid a further rise in outstanding business.

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