AI Data Insight
Japan's Q1 2026 Services PMI recorded 53.4, a slight decline from the previous 53.8, but still better than the market expectation of 52.8. Despite maintaining expansion for 12 consecutive months, business confidence has plummeted to a new post-pandemic low, dragged down by the war in the Middle East and surging energy costs. Growth in both new orders and employment has slowed, indicating that short-term recovery momentum faces the challenge of inflationary headwinds.