FX.co ★ Japan Services Sentiment Hits 7-Month Peak

Japan's service sector index climbed to 46.7 in August 2025, up from 45.2 the previous month. This marks the highest level since January and represents the fourth consecutive monthly increase, surpassing market expectations of 45.7. The household budget trend index saw improvement, largely due to growth in the food and beverage industry, although housing-related activities weakened. Meanwhile, the corporate trend index showed progress, bolstered by strength in the non-manufacturing sector, despite ongoing declines in employment. Additionally, the economic outlook index rose slightly to a seven-month peak of 47.5, compared to 47.3 in July. This reflects growing optimism for continued recovery, even amid ongoing inflationary pressures and uncertainties related to U.S. trade policies.