FX.co ★ Japan Services Sentiment Falls to 3-Month Low

Japan's service sector index slightly declined to 48.6 in December 2025, down from 48.7 in November, falling short of market expectations of 48.8 and hitting the lowest level since September. Despite increased production in food and beverages, retail activities saw a downturn in household trends. Additionally, the corporate trend index fell due to weakened non-manufacturing activity, although there was a noted improvement in employment rates. On a more positive note, the economic outlook index increased to 50.5 from November’s 50.3, suggesting cautious optimism for recovery despite ongoing cost pressures.