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.