Overview

• Japan’s services PMI climbed to 53.6 in July, the strongest expansion since February, supported by brisk domestic demand but marked by the first fall in export orders since December and flat employment ending a 21-month growth streak.
• China’s private S&P Global services PMI surged to 52.6, a 14-month peak driven by smaller export-oriented firms, even as the official state survey held flat at 50.0.
• India’s services sector accelerated to a 60.5 PMI reading, an 11-month high underpinned by strong international demand and steady domestic sales despite hiring slowing to a 15-month low.
• Across the three economies, firms cited labour shortages and budget constraints as key barriers to expanding headcounts despite rising workloads.
• Persistent input cost pressures, wavering export orders and evolving trade-deal and monetary policy expectations continue to shape confidence in the region’s service recovery.