Japan's services sector keeps expanding, but manufacturing lags
Japan's service sector kept expanding in September, with a slightly steeper increase in business activity.
The S&P Global Japan Services PMI ticked up to 53.3 from August's 53.1—marking nearly a year of steady gains above the neutral 50 mark.
This continued streak is mostly thanks to strong demand at home, even as new export business continued to decrease.
Local demand drives expansion
Most of the action came from local customers placing more orders, which even led to a small bump in hiring.
But businesses are feeling the pinch from high labor and material costs, so prices for services are creeping up too.
Overall economic growth is cooling off a bit as manufacturing lags behind—something the Bank of Japan is keeping an eye on with concerns about tariffs, inflation, and rising expenses.