The S&P Global Japan Services PMI rose to 53.3 in September 2025, above the flash estimate of 53.0 and August’s 53.1, signaling the sixth straight month of expansion in the service sector. New orders increased solidly, unchanged from August, supported by business development efforts and new client acquisitions, though foreign demand continued to decline. Employment edged up for the first time in three months, while capacity pressures persisted as outstanding business grew further, albeit at a slower pace than August’s 26-month high. On costs, input price inflation eased but remained sharp and above the long-term average, driven by higher labor, raw material, and fuel costs. In turn, service providers raised output charges at a solid pace. Business sentiment strengthened to its highest since January, reflecting expectations of company expansions, new product launches, and stronger customer spending.