23.01.202600:30:00UTC+00Japan's Service Sector Expands Further in January, PMI Hits 53.4

Japan's service sector continued to exhibit robust growth at the start of 2026, as evidenced by the au Jibun Bank Services Purchasing Managers' Index (PMI) which rose to a commendable 53.4 in January. This uptick from the previous month's mark of 51.6, recorded in December, signals an accelerated expansion in service activities across the nation.

The heightened PMI reading denotes not only improving conditions but also potentially increased demand and activity levels within Japan's service economy. With PMI readings above 50 indicating expansion, these figures reflect a rising confidence and momentum in the sector, suggesting positive implications for economic health and consumer sentiment for the coming months.

The updated data, released on January 23, 2026, highlights Japan's ability to navigate global economic headwinds successfully, as domestic services continue to grow and evolve. This expansion could provide a significant boost to broader economic prospects, as the service sector plays a crucial role in Japan's economic structure. Economists and policymakers alike will be watching closely to see if this growth trend continues as the year progresses.