AI Data Insight
Japan's Q2 2026 (April) Services PMI dropped to 51.0, falling short of the previous reading of 53.4 and initial market estimates, marking an 11-month low, though it maintained expansion for the 13th consecutive month. Impacted by the situation in the Middle East and surging fuel costs, the growth rate of new orders slowed, and overseas exports saw a rare decline, while both corporate input costs and final selling prices soared to record highs. Caught between cooling demand and rising inflation, the pace of the Bank of Japan's monetary policy will face a more severe test.