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Japan's Service Sector Growth Slows Amid Rising Costs

9/3/2025

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Summary

Story summary

Japan's service sector growth slowed in August, with the S&P Global Services PMI decreasing to 53.1 from 53.6 in July.
Strong domestic demand supported new orders, while foreign demand significantly declined.
Employment decreased for the first time since September 2023, resulting in higher backlogs.
Input costs increased, impacting margins, yet overall business confidence showed improvement.

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Story summary

Japan's service sector growth slowed in August, with the S&P Global Services PMI decreasing to 53.1 from 53.6 in July.
Strong domestic demand supported new orders, while foreign demand significantly declined.
Employment decreased for the first time since September 2023, resulting in higher backlogs.
Input costs increased, impacting margins, yet overall business confidence showed improvement.