FX.co ★ Japan Services Sentiment Lowest in Over 3 Years

The metric assessing Japan's service sector declined to 42.6 in April 2025, down from 45.1 in the previous month. This decrease marks its lowest point since February 2022 and represents the fourth month in a row of downward movement. In terms of household budget trends, the index revealed a decrease within housing-related sectors, while there was an uptick in the food and beverage industry. Additionally, the corporate trend index saw a downturn, particularly affected by the challenges facing the non-manufacturing sector. Employment figures also experienced a decline during this period. Simultaneously, the economic outlook index slipped to 42.7 in April, reaching its lowest level in four years, down from 45.2 in March. This dip underscores rising concerns about the implications of U.S. trade policy and ongoing cost pressures.