The S&P Global Japan Services PMI stood at 53.1 in August 2025, above the flash estimate of 52.7 but down from July’s 53.6. It signaled the fifth straight month of growth in the services sector, mainly supported by the fastest rise in new orders since February. Meanwhile, foreign demand weakened further, with new export business falling at the steepest rate in over three years. Staffing levels also came under pressure, slipping slightly after stagnating in July and marking the first decline since September 2023, even as backlogs rose at the quickest pace in more than two years. On prices, input cost inflation rebounded from July’s 17-month low, but competitive pressures curbed firms’ pricing power, with output charges growing at the softest pace since October 2024. Still, business confidence improved from July’s three-month low, buoyed by planned expansions and expectations of stronger demand at home and abroad.