Japan's Service Sector Growth Dips in December, PMI Reveals

• Japan's service sector expanded at its slowest pace since May in December, with the PMI falling to 51.6 from 53.2.
• The S&P Global final Japan Services PMI remained above the 50.0 growth threshold for the ninth consecutive month.
• Softer overall demand countered a rebound in new export businesses, which saw expansion for the first time since June.
• Input costs rose at the fastest pace since May due to higher raw materials, staff, fuel, and construction costs, leading to increased output charges.
• Despite cost pressures, staff numbers grew at the fastest rate in over two-and-a-half years, and business confidence remained strong.

Why It Matters: Japan's service sector growth slowed in December, facing cost pressures despite rising staff and confidence.