Japan's service sector continued to expand in October, with the S&P Global Japan Services PMI staying above the neutral 50 mark, despite a softer increase in new orders, according to the latest report, Azernews reports, citing foreign media.

The headline figure registered 53.1 in October, slightly down from 53.3 in September. Meanwhile, the S&P Global Japan Composite PMI Output Index rose modestly from 51.3 to 51.5 over the same period.

“The service sector continued to drive overall growth in Japan's private sector in October, offsetting another decline in factory output. Employment also saw further gains. However, price pressures have intensified across both sectors and will be important to monitor in the coming months,” said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence.

The resilience of Japan's service sector highlights a shift in the economy toward domestic consumption and services, even as manufacturing struggles with global supply chain disruptions.

Analysts note that how businesses manage rising prices could shape Japan's economic trajectory heading into 2026.

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