0139 GMT - Japan's service sector activity stayed strong in August, but that was largely driven by domestic demand, as new export business declined again, S&P Global PMI data suggests. The headline services business activity index slipped from July but remained comfortably above the neutral 50.0 level to signal that output grew for a fifth straight month. That said, cost pressures also rose, and more competition curbed firms' pricing power, indicating a tighter squeeze on margins, says Annabel Fiddes, economics associate director at S&P Global Market Intelligence. Employment is also a growing concern, with staffing levels down for the first time in nearly two years. Overall, solid service sector activity set against subdued manufacturing suggests a stronger GDP performance in 3Q so far, Fiddes adds. (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

September 02, 2025 21:39 ET (01:39 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.