2026.01.0700:30:00UTC+00Japan's Services Sector Growth Slows in December as au Jibun Bank Services PMI Declines to 51.6

The Japanese services sector experienced a notable slowdown in December, according to the latest au Jibun Bank Services Purchasing Managers' Index (PMI). The index fell to 51.6 from a previous reading of 53.2, signaling a deceleration in growth. The PMI data, which were updated on January 7, 2026, suggest that while the sector is still expanding, it is doing so at a slower pace.

The au Jibun Bank Services PMI is a key indicator that measures the performance of the service sector by assessing variables such as new orders, employment, and business expectations. A reading above 50 indicates expansion, while a reading below 50 points to contraction. December's figure, although still in expansion territory, marks the slowest growth since previous observations.

The decline in services PMI comes amid a challenging economic environment, with various factors potentially impacting business conditions, including global economic uncertainties and domestic demand fluctuations. The deceleration prompts questions about the sector's resilience and the overall momentum of Japan's economic recovery as it navigates the beginning of 2026. Industry experts and policymakers will be closely monitoring future data to evaluate the sustainability of growth in the coming months.