Japan’s service sector index increase to 47.1 in September 2025 from 46.7 in the previous month, marking the highest reading since January and the fifth straight monthly increase and topping market expectations of 47.0. The household budget trend index improved, driven by gains in housing-related and other sectors despite weaker food and beverage output. Meanwhile, the corporate trend index softened, weighed by a decline in manufacturing, though employment strengthened. Meanwhile, the economic outlook index rose to an eight-month high of 48.5 in September from the prior 47.5, reflecting signs of further economic recovery despite persistent cost pressures and the impact of U.S. trade policy.