Japan service sector expansion slows to seven month low in December as costs rise

Japan service sector growth slowed in December as input costs rose at their fastest rate since May. Despite softer demand, employment growth hit a multi-year high.

洞察:
Japan JPJPservice sector expanded at its slowest pace in seven months during December as the industry faced a combination of softening demand and significant cost pressures. The final S&P Global Japan Services Business Activity Index fell to 51.6 from 53.2 in November, coming in below the earlier flash estimate of 52.5. While the reading remained above the 50.0 threshold that separates growth from contraction for the ninth consecutive month, the figures indicate a notable deceleration in economic momentum.
A man takes lunch at a restaurant in the Ameyoko shopping district in Tokyo, Japan, May 15, 2025. REUTERS/Issei Kato
A man takes lunch at a restaurant in the Ameyoko shopping district in Tokyo, Japan, May 15, 2025. REUTERS/Issei Kato
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