The S&P Global Japan Services PMI fell to 52.4 in October 2025 from a final 53.3 in the previous month, preliminary data showed. It marked the lowest level since June, with growth in new orders slowing amid a further decline in overseas demand. At the same time, employment rose only marginally. On the price front, operating expenses increased at a faster pace as inflationary pressures persisted, driven by higher labor costs and a weaker yen. In response, service providers raised their selling prices again to protect margins. Looking ahead, business confidence weakened, reflecting growing concerns over demand conditions and cost pressures.