FX.co ★ Japan Services Sentiment Hits 15-Month Peak

Japan’s services sector index rose to 48.9 in February 2026 from 47.6 in January, beating market expectations of 48.2 and reaching its highest level since December 2024. The improvement was driven by stronger household-related activity in services and gains across several other sectors, pointing to a gradual recovery in domestic demand. The corporate trend index also moved higher, supported primarily by the manufacturing sector, while labor market conditions continued to improve. Separately, the economic outlook index was broadly unchanged (50.0 vs. 50.1 in February), underscoring cautious optimism that Japan’s economic recovery will persist, even as businesses and households remain alert to ongoing cost pressures.