Japan’s service sector showed signs of stabilization in February, as the Tertiary Industry Activity Index narrowed its decline significantly compared with the previous month. The index stood at -0.70 in February 2026, a marked improvement from January’s steep drop of -8.70, according to data updated on 20 April 2026.
The figures suggest that while activity in Japan’s broad services industry is still contracting, the pace of decline has slowed dramatically. Coming on the heels of January’s pronounced weakness, the February reading may indicate that the worst of the downturn in tertiary industries — which include retail, finance, real estate, communications, and other service sectors — could be easing.
Market participants and policymakers are likely to watch upcoming releases closely to determine whether February’s softer decline represents the start of a sustained stabilization or a temporary pause in a broader slowdown across Japan’s service-driven economy.