FX.co ★ Japan's Services Sector Shows Continued Growth in February with Increased PMI

Japan's services sector remained buoyant in February 2025, as reflected in the au Jibun Bank Services Purchase Managers' Index (PMI). Updated data released on March 5th indicated that the services PMI increased to 53.7, a slight rise from January’s 53.0, highlighting a continued expansion of business activities in the sector.

The PMI, which is a critical indicator of the economic health of the services sector, suggests that businesses in Japan experienced growth for the third consecutive month. A reading above 50 denotes expansion, while a figure below 50 signals contraction. The February increase reinforces confidence in the resilience of the Japanese economy amid global uncertainties.

Economists view the sustained expansion as a positive sign for Japan’s overall economic performance, potentially leading to increased consumer confidence and spending. As one of the key drivers of the nation’s economic growth, the services sector's ongoing momentum will be under close watch by market analysts and policymakers in the coming months to gauge its impact on the broader economic landscape.