Japan’s S&P Global Services PMI Business Activity Index edged up to 51.7 in October 2026 from 51.3 in September, but came in below the flash estimate of 52.0, signaling only a modest expansion in activity. New orders grew at a slightly quicker pace, while overseas sales recorded their slowest decline in six months. Employment continued to rise, albeit marginally, marking the weakest increase in the current 14‑month run of job creation. Capacity pressures remained evident, with a further accumulation of unfinished business.
On the price front, both input costs and output charges rose at a slower pace, suggesting some easing in inflationary pressures, even though inflation stayed well above its historical norm. Looking ahead, business confidence slipped to its lowest level since March, as concerns about inflation, population ageing, and persistent labor shortages weighed on the outlook.
