Japan’s S&P Global Services PMI fell to 52.5 in December 2025 from a final 53.2 in the previous month, preliminary data showed, marking the lowest reading since June. Despite the decline, new order growth accelerated slightly, supported by a fractional improvement in overseas sales. At the same time, employment accelerated, but service providers faced a steeper accumulation of unfinished work. On the inflation front, input costs climbed sharply in a historically elevated setting, while output prices increased solidly as firms passed on higher expenses.