FX.co ★ Japan Services PMI Revised Higher

Japan’s S&P Global Services PMI Business Activity Index rose to 52.2 in June 2026, up from the preliminary estimate of 51.8 and from 50.0 in May. This was the 14th expansion in the past 15 months, though the pace of growth remained modest and slightly below the average of the past year.

New business increased at one of the fastest rates in nearly two years, supported by stronger domestic demand, even as export orders declined sharply. Firms also stepped up hiring, with employment growth accelerating. Backlogs of work rose at the quickest pace since March, indicating mounting capacity pressures.

Input cost inflation climbed to a four-year high, reflecting higher oil, energy, food, and labor costs. However, growth in selling prices slowed compared with May, suggesting weaker pass-through of rising costs to customers.

Business confidence remained subdued, among the weakest levels since the pandemic. Companies cited uncertainty stemming from Middle East tensions, persistent cost pressures, and ongoing labor shortages as key risks to the outlook.