Japan Services PMI Falls to 51.9 in July but Stays in Expansion

According to S&P Global, Japan's services sector PMI flash reading came in at 51.9 in July, down from 52.2 in June but remaining above the 50 expansion threshold. The manufacturing PMI was 54.7, down marginally from 54.8, while the composite PMI rose to 53.1 from 52.8, marking the fastest overall business activity expansion since February 2026.

S&P Global Market Intelligence chief economist Usama Bhatti stated that Japan's private sector growth momentum strengthened with the start of the second half of 2026, with manufacturing showing stronger expansion while services growth moderated.