Japan’s services sector lost momentum in March, with the final PMI Services reading falling to the neutral mark of 50.0, down sharply from 53.7 in February. Composite PMI dropped to 48.9—its lowest since November 2022—signaling contraction in overall private sector activity.
S&P Global’s Annabel Fiddes noted that while new orders and export business in services remained in growth territory, market conditions had clearly softened.
Additionally, input costs across the private sector rose at the fastest pace in seven months, and output price inflation remained historically elevated.
Business sentiment also deteriorated, with overall optimism about the year-ahead outlook for output falling to its lowest since January 2021.
