Japan's services growth slows amid cost pressures, PMI shows

TOKYO, Aug 5 : Japan's services sector expanded at a slower pace in July as demand weakened and firms grappled with intense cost pressures, leading to the hottest inflation in selling prices since April 2014, a private survey showed.The S&P Global final Japan Services Purchasing Managers' Index (PMI) fell to 51.2 in July from 52.2 in June, also undershooting the flash reading of 51.9. It marked a second consecutive monthly expansion but at a much slower rate than in the earlier months of 2026. Readings above 50.0 indicate growth in activity, while those below point to a contraction.New business growth hit the lowest in two years. Foreign demand for Japanese services declined for the fourth straight month, though the rate of contraction eased from June and May.Cost pressures remained high,