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The S&P Global Japan Services PMI declined to 52.7 in August 2025, down from July's five-month peak of 53.6, according to preliminary data. Despite the decrease, this still represents the fifth straight month of growth in the services sector, largely due to an ongoing increase in new orders, although international demand saw a noticeable drop. On the cost front, service providers experienced a more pronounced increase in input price inflation compared to manufacturers. This was due to rising expenses for raw materials, labor, fuel, and transportation.