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.