Japan’s service sector index slipped to 48.7 in November 2025 from October’s 19-month peak of 49.1, marking the first drop in seven months and falling short of market expectations of 49.5. The decrease reflected broad weakness across related components, including household sentiment, corporate activity, and employment conditions. Meanwhile, the economic outlook index eased to 50.3 from October’s more than two-year high of 53.1, as concerns over elevated cost pressures tempered optimism despite expectations for continued economic recovery.