Japan's Private Sector Sees Fastest Growth in 32 Months, Driven by Services Boom

• Japan's private sector recorded its strongest growth in 32 months in January, according to S&P Global PMI data.
• The services sector expanded at its quickest pace in nearly a year, with the Services PMI rising to 53.7 from 51.6.
• The Composite PMI, combining manufacturing and services, reached 53.1, marking the fastest overall private-sector output growth since May 2023.
• New business for service providers saw the strongest rise in four months, and overseas demand for Japanese services improved significantly.
• While cost pressures eased, selling price inflation accelerated to a seven-month high, and concerns about global outlook and labor shortages persist.