Overview
- New export business in services fell back into contraction as fewer visitors, particularly from Japan, dampened overseas demand.
- Services firms reduced staffing for a fifth consecutive month, cutting both full- and part-time roles and contributing to a slight buildup of backlogs.
- Input costs rose for the tenth straight month while selling prices declined due to intensifying competition, highlighting persistent deflationary pressure.
- The Composite Output Index ticked up to 51.3 from 51.2, indicating continued overall expansion despite uneven momentum across sectors.
- Business sentiment improved to a nine-month high, helped by expectations for better conditions in 2026 and signals of proactive fiscal support.