Japan’s Index of Tertiary Industry Activity fell -0.4% MoM in August 2025 to 104.3 (seasonally adjusted), after rising 0.5% in July, while the index was up 1.2% YoY, indicating modest expansion over the year but softening short-term momentum.

• Broad-ranging Personal Services rose 0.6% MoM and 1.2% YoY to 105.8, supported by steady consumer-facing activity.

• Broad-ranging Business Services edged down -0.1% MoM but increased 1.1% YoY to 103.7, maintaining mild annual growth despite a small monthly decline.

• Wholesale Trade declined -3.4% MoM, contributing -0.36 ppts to the overall drop, led by weakness in machinery and equipment sales (-3.8% YoY).

• Transport and Postal Activities fell -1.9% MoM due to lower road freight transport, though activity was still 1.3% higher YoY.

• Electricity, Gas, Heat, and Water dropped -3.0% MoM, mainly from lower electricity production and distribution (-0.6% YoY).

• Finance and Insurance gained 2.9% MoM, adding +0.27 ppts to the index, supported by financial product transactions and cooperative organization activity.

• Living and Amusement-related Services rose 0.5% MoM and 4.5% YoY, reflecting strength in restaurants and leisure services.

• Real Estate increased 0.2% MoM and 7.0% YoY, with continued strong demand for real estate agency services.

Japan’s Index of Tertiary Industry Activity rose 0.5% MoM in July 2025 to 105.0 (seasonally adjusted) and was up 1.6% YoY, with growth led by business services and transport.

• Broad-ranging Business Services rose 0.4% MoM and 2.4% YoY, supported by employment dispatching and machinery-related services (+1.0% MoM, +3.0% YoY).

• Broad-ranging Personal Services fell -0.6% MoM but remained up 0.7% YoY, showing softer short-term activity.

• Transport and Postal Activities grew strongly (+3.4% MoM, +1.5% YoY), contributing the largest positive impact to the index.

• Finance and Insurance rose 1.5% MoM but slipped -0.1% YoY, showing mixed performance.

• Real Estate gained 1.2% MoM and 4.4% YoY, reflecting sustained strength in property-related services.

• Electricity, Gas, Heat, and Water increased 0.5% MoM and 1.5% YoY, driven by higher electricity distribution.

• Retail Trade fell -1.9% MoM and -3.4% YoY, marking a drag on the index, while Living and Amusement-related Services declined -0.9% MoM despite a +2.3% YoY rise.

• Information and Communications was flat MoM but up 4.5% YoY, showing steady longer-term expansion.

Japan’s Index of Tertiary Industry Activity rose 0.5% MoM in the latest month to 105.0 (seasonally adjusted) and was up 3.3% YoY, supported by solid gains in both personal and business services.

• The Broad-ranging Business Services index increased 1.1% MoM (4.3% YoY), driven by strength in technical services and machinery repair.

• Broad-ranging Personal Services rose 0.7% MoM (2.1% YoY), with gains in medical and welfare services as well as retail trade.

• Transport and Postal Activities were up 3.3% MoM, contributing +0.28 ppts to the headline index, mainly on higher road freight volumes.

• Electricity, gas and water activity increased 4.1% MoM (4.3% YoY), reflecting higher electricity production and distribution.

• Information and communications (-0.9% MoM) and real estate (-1.0% MoM) were notable drags, partially offsetting broader service-sector strength.

Japan’s Index of Tertiary Industry Activity rose 0.6% MoM (vs 0.1% MoM expected) in the latest month to 104.4 (seasonally adjusted) and was up 1.5% YoY, supported by gains in business services and transport-related industries.

• The Business Services index rose 1.0% MoM and 1.0% YoY to 103.2, while Personal Services fell -0.3% MoM but rose 2.1% YoY.
• Transport and postal activities, led by a 6.4% MoM gain in road freight transport, contributed 0.53 percentage points to the overall index.
• Living and amusement-related services rose 1.7% MoM, with strong growth in services for hobbies and dining.
• Real estate services increased 0.7% MoM and 5.9% YoY, while information and communications rose 0.7% MoM and 3.3% YoY.
• Offsetting gains were declines in finance and insurance (-2.5% MoM), electricity supply (-1.3% MoM), and motor vehicle retail trade (-0.3% MoM).