FX.co ★ Japan’s Tertiary Industry Activity Plunges in January, Reversing December Surge

Japan’s services sector saw a sharp reversal at the start of 2026, as the Tertiary Industry Activity Index swung from strong growth to a deep contraction. According to the latest data updated on 17 March 2026, the index fell to -9.20 in January 2026, after having registered a robust 8.00 in December 2025.

The abrupt shift suggests a significant cooling in activity across Japan’s service-based industries, which include sectors such as retail, finance, transportation, and healthcare. Coming immediately after a strong December reading, the January drop indicates heightened volatility in the country’s tertiary sector momentum as the new year began.

Market participants and policymakers are likely to watch upcoming releases closely to determine whether January’s decline reflects a temporary correction following December’s spike or the start of a more persistent downturn in Japan’s service-driven economic activity.