Japan’s S&P Global Services PMI Business Activity Index edged down to 51.9 in July 2026 from a final 52.2 in June, according to flash estimates. Although growth slowed, the reading still signaled expansion in the services sector for the 16th consecutive month. New business growth eased to a modest pace, while employment rose more slowly and foreign demand contracted again.
On the pricing front, input cost inflation continued to soften. However, firms increased output prices at the fastest rate in more than 12 years, underscoring sustained efforts to pass higher costs on to customers.
Looking ahead, business confidence weakened amid ongoing uncertainty related to the war in the Middle East—particularly its effects on energy and raw material prices—as well as persistent supply chain disruptions.
