FX.co ★ Japan Services Sentiment Drops to Over 2-1/2-Year Low

The index for Japan's service sector experienced a notable drop in March 2025, falling to 45.1 from February's 45.6. This represents the lowest point reached since August 2022 and marks the third consecutive month of decline. The downturn is particularly evident in trends within the non-manufacturing sector, where both corporate and household indexes showed turbulence. Specifically, while the household budget index saw a decrease in housing expenditures, there was an uptick in spending on food and beverages. Furthermore, a decline in employment figures was observed. Additionally, the economic outlook index fell to 45.2 in March from 46.6 in the previous month, also hitting its lowest level since July 2022. This decline is attributed to concerns over a sluggish economic recovery and signs of ongoing weakness, exacerbated by sustained cost pressures.