Japan’s S&P Global Composite PMI Business Activity Index fell to 52.3 in September 2026 from 53.5 in August, marking the weakest private-sector expansion since May. The final services PMI eased to 51.3 from a five-month high of 52.5 and came in below the 51.6 flash estimate as business activity and new orders grew more slowly amid earthquake-related disruption. Domestic demand continued to support service-sector sales, but export business declined again at the second-fastest pace since January 2021. Employment rose at the quickest pace since February, while backlogs increased at a seven-month high as firms sought to add capacity and fill vacancies. Input-cost inflation slowed to a six-month low but remained elevated, and service providers continued to raise charges at a softer pace than in August. The Bank of Japan’s tankan survey showed manufacturer confidence at an eight-year high in July-September, while non-manufacturer sentiment weakened.