In a significant turnaround, Japan's Tertiary Industry Activity Index showed a robust recovery in September 2025 by climbing to 5.00, according to the latest data released on November 14, 2025. This marks a noteworthy rebound from the previous month's slump, where the index had plummeted to -4.30.
The index, which is a crucial measure of the health of Japan's service sector, encompasses a wide range of activities concentrated in non-manufacturing industries such as real estate, retail trade, and financial services. The surge in the index reflects renewed vigor in Japan's service-oriented sectors, potentially driven by increased consumer spending and a boost in domestic tourism.
Improving the tertiary industry's performance suggests a positive shift in Japan's economic landscape, potentially influenced by seasonal factors and strategic policy interventions aimed at revitalizing the service economy. As Japan continues to adapt to global economic conditions, this bounce-back enhances optimism about the country's economic trajectory as it steps into the final quarter of 2025.
