Japon Economy Watchers Survey

Japan’s service sector index rose to 49.1 in October 2025 from 47.1 in September, marking the highest level since March 2024 and the sixth consecutive monthly increase, exceeding market expectations of 47.6. The household budget trend index also improved, supported by gains in retail and other sectors, despite declines in housing-related industries. Meanwhile, the corporate trend index accelerated, driven by stronger activity in manufacturing and other sectors, while employment conditions also strengthened. At the same time, the economic outlook index climbed to 53.1 in October, up from 48.5 in September, marking the highest reading since July 2023 and signaling a continued recovery in the Japanese economy.