FX.co ★ Japan’s Tertiary Industry Activity Index Surges to 16.5% in March, Rebounding from February Slump

Japan’s services sector posted a dramatic rebound in March 2026, with the Tertiary Industry Activity Index jumping to 16.50% from a previous reading of -1.10% in February 2026. The latest figures, updated on 19 May 2026, signal a sharp turnaround in activity within the country’s broad tertiary sector, which includes services such as retail, finance, transport, and communications.

The swing from contraction to strong expansion suggests a marked improvement in domestic demand and business activity following February’s decline. While the data do not detail specific drivers behind the surge, the magnitude of the shift highlights renewed momentum in Japan’s service industries during March, a key component of overall economic performance.

With the tertiary sector accounting for a significant share of Japan’s GDP, the March reading of 16.50% will be closely watched by investors and policymakers as they assess the durability of this rebound and its implications for growth trends in the months ahead.