Japan Services PMI Eases to 51.3 in September Amid Persistent Inflationary Pressures

Japan's service sector growth slowed in September, with the S&P Global Services PMI falling to 51.3 from August's five-month high of 52.5. Concurrently, the Composite Output Index dropped from 53.5 to 52.3, continuing an 18-month expansion in overall private-sector output. Despite the deceleration, services employment expanded at its fastest pace since February, marking a 13-month hiring streak, while order backlogs accumulated at a seven-month high. Output prices rose at near-record rates, bolstering market expectations for a potential Bank of Japan interest rate hike as soon as its October meeting.