Japan's Services Sector Growth Continues, Despite Slowdown in Demand and Rising Inflation

Japan's services sector maintained growth in October, despite the slowest growth in new orders in 16 months and a resurgence in inflationary pressures. The S&P Global final Japan Services Purchasing Managers' Index (PMI) slipped to 53.1 from 53.3 in September, with sub-index data showing a deceleration in new order growth to a 16-month low. Inflationary pressures intensified, with both input costs and output charges rising at faster rates. Business confidence softened, and employment in the service sector increased at a slower pace.