Japan’s services sector expanded at a slightly slower pace in December 2025, according to the latest S&P Global Services Purchasing Managers’ Index (PMI) data released on 16 December 2025.
The Services PMI dipped to 52.5 in December from 53.2 in November 2025, signaling that while activity in the sector continues to grow, the momentum has moderated. A reading above 50 indicates expansion, so the latest figure still points to ongoing growth in services, albeit at a reduced rate compared with the previous month.
The December softening suggests that the post‑November strength in Japan’s service economy is cooling somewhat, which investors and policymakers may watch closely for signs of how resilient domestic demand and service activity remain going into the new year.
