FX.co ★ Japan Services PMI Revised Higher

In March 2025, the Au Jibun Bank Japan Services PMI registered a level of 50, marking an improvement from the preliminary estimate of 49.5 but a decrease from the six-month peak of 53.7 observed in February. The growth of new orders decelerated, reaching its slowest pace in four months, while new export business saw a solid yet weaker expansion. Employment growth slowed to a three-month low, though it still exceeded the series average. Meanwhile, there was a renewed uptick in outstanding business, albeit the rate of accumulation was modest. The price indices showed diverging trends: input costs rose at the fastest pace in 19 months, yet in a bid to attract new orders, businesses moderated their output price inflation, which fell to a five-month low. Looking ahead, business confidence dipped for the second month in a row. Optimism fell to its lowest point since January 2021, with major concerns about rising costs, labor shortages, and an aging population persisting.