Economy

Japan's services PMI eases, but signals stay hawkish for the BOJ

Japan's services PMI — a survey-based index of business activity — eased to 51.3, as hiring picked up and price pressures stayed intense.

Output price inflation is near record highs, hiring is rising and order backlogs are building — signs of capacity pressure. S&P Global explicitly flags October as a possible month for a rate hike.

For beginners A PMI reading above 50 signals expanding business activity; combined with high price inflation and rising hiring, it typically pushes a central bank toward tighter policy — meaning higher interest rates.