The au Jibun Bank Japan Services PMI was revised higher to 51.7 in June 2025, up from 51.5 in the preliminary estimate and following a final reading of 51.0 in May. This marked the third consecutive month of expansion in the services sector, supported by a faster rise in new orders and a modest increase in overseas sales, though the softest growth in 2025 so far. Firms continued to expand their workforce, and backlogs of work accumulated. Though modest, the latest increase in employment was the most marked since January. On the price front, input cost inflation eased to a six-month low. Meanwhile, output prices increased as firms passed on expenses to clients, marking the most pronounced rise in 14 months. Looking ahead, business sentiment improved to a four-month high and rose above the series average, supported by forecasts of higher activity, staff hiring, and the rollout of new products.