Japan’s S&P Global Services PMI Business Activity Index rose to 52.3 in August 2026 from a final reading of 51.2 in July, according to a preliminary estimate. The latest figure signaled a third straight month of expansion in the services sector and the fastest growth since March, driven by a stronger rise in new business, which increased at the second-quickest pace since February.
Nonetheless, external demand softened, as service providers reported a sharper and more pronounced decline in new export orders. Employment growth also lost momentum, with payrolls edging up only marginally and at the slowest rate in the past year.
At the same time, services firms remained less optimistic than their manufacturing counterparts, constrained by elevated cost pressures and concerns about the economic fallout from the ongoing conflict in the Middle East.
