June data shows Japan’s services sector expanded at the fastest pace in two years, though input costs surged to a near-two-year high.
Japan’s services PMI rose to 52.2 in June from 50.0, marking the strongest new work growth in two years. The expansion was driven by increased activity, though input costs climbed at the fastest rate since June 2022, pressuring margins.
The prior month’s reading was 50.0, indicating stagnation. Year-ahead business confidence remained subdued despite the uptick, reflecting persistent economic uncertainties. Comparable data showed Australia’s services PMI rebounded to 50.5 in June from 48.7, returning to growth.
No immediate market reaction was reported for Japan’s data.