Japan's Service Sector Growth Slows in September on Weaker Demand and Rising Costs

Japan's service sector expanded in September at the slowest pace since January as growth in new business and exports stalled.

Capacity pressures eased as backlogs rose only slightly and employment fell at the fastest rate since January 2022.

Firms faced rising costs for fuel, utilities and labor, though input price inflation eased from August.

Service providers remained optimistic about business prospects, but confidence was the lowest in 8 months.

The composite PMI fell to 52.1 in September from 52.6 in August, staying above 50 for the 9th straight month.