Japan Services Activity Stagnates in May Amid Cost Surge
The S&P Global final Japan Services PMI fell to 50.0 in May, ending a 13-month expansion streak as geopolitical tensions drove input prices higher. Service providers raised output prices at the fastest rate since 2014 to offset surging fuel and labor costs.
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Japan's services sector activity fell to 50.0 in May, ending 13 months of growth as rising fuel and labor costs hit demand. The reading dropped from 51.0 in April, marking the lowest level since early 2023. Stagnating services growth suggests the domestic recovery is losing momentum under the weight of persistent global inflation.
