BOJ Hike Case Strengthens as Japan Services PMI Hits Five-Month High

The S&P Global final Japan Services PMI rose to 52.5 in August from 51.2 in July, marking its fastest pace of growth in five months and third consecutive month in expansion territory.

New business rose for a 26th consecutive month and at a faster pace than July, driven by stronger domestic demand, public sector projects, and higher client enquiries.

However, new export business contracted for a fifth straight month, at the sharpest rate since November 2020, with high fuel costs and softer international demand cited as contributing factors.