EL7.AI
Macro EconomyMedium•5 November 2026•
1 min read

Japan Services PMI Rises to 51.7 in October as Hiring Growth Slows

Key Facts

1Japan's Services PMI rose to 51.7 in October from 51.3 in September, marking five months of expansion.
2The composite PMI slipped to a five-month low of 52.1 as manufacturing growth slowed.
3Services hiring rose at the slowest pace in 14 months as business confidence hit its weakest since March.

Japan's Services PMI rose to 51.7 in October from 51.3 in September, marking five consecutive months of expansion according to S&P Global. The composite PMI, which tracks both services and manufacturing, slipped to a five-month low of 52.1 as a slowdown in the manufacturing sector weighed on overall private sector growth.

Services hiring increased at its slowest pace in 14 months as business confidence hit its weakest level since March due to rising energy costs and labor shortages. These figures follow the Bank of Japan's decision to maintain interest rates at 1.25% on October 30, 2026, as policymakers balance resilient service demand against cooling labor market signals.

The Bank of Japan is scheduled to release its Summary of Opinions on November 9, 2026, providing further insight into the monetary policy outlook alongside the release of household spending data for the same period.