Japan Services Growth Slows to 3-Month Low Amid West Asia War Concerns

• Japan's services sector expanded at its slowest pace in three months in March, with the Services PMI falling to 53.4 from 53.8.
• Escalating uncertainty over the West Asia conflict heavily weighed on business sentiment and demand expectations.
• Business confidence deteriorated sharply, reaching its lowest level since September 2020, due to concerns about the war's economic fallout.
• Cost burdens intensified with input prices rising at the fastest pace in nearly a year, linked to higher raw material, fuel, and energy expenses.
• Employment growth in the services sector slowed to a five-month low, with businesses citing labor shortages and voluntary resignations.