The S&P Global Japan Services PMI dropped to 52.7 in August 2025 from July’s five-month high of 53.6, a flash estimate showed. Still, it marked the fifth consecutive month of expansion in the services sector, primarily driven by a further rise in new orders even as overseas demand recorded a solid decline. On the cost side, service providers continued to face a sharper pace of input price inflation than manufacturers, reflecting higher costs for raw materials, labor, fuel, and transport.