Japan Services Sentiment Drops to Over 2-1/2-Year Low

The gauge for Japan’s service sector sharply declined to 45.1 in March 2025 from 45.6 in the previous month, marking the lowest level since August 2022, marking its third consecutive month of decline and the lowest level since July 2022.

The corporate trends index dropped within the non-manufacturing industry, while the measure for household budget trends fell in housing but increased for food and beverages.

Also, employment saw a decline.

Meanwhile, the economic outlook index shrank to 45.2 in March from 46.6 in February, the lowest since July 2022, amid concerns over slow economic recovery and signs of weakness amid persistent cost pressures.