Japan Composite PMI Confirmed at 3-Month High

Japan’s S&P Global Composite PMI fell to 52.4 in April 2026 from a final 53.0 in the prior month, flash data showed. It was the lowest reading since December despite marking the 13th straight month of private-sector expansion. Growth was tempered by a slowdown in services activity, which offset the strongest rise in manufacturing output since February 2014. New business rose modestly, with the pace picking up slightly from March, while foreign demand grew the least in four months. Employment continued to rise, extending a hiring streak of over 2-1/2 years, but backlogs of works increased for a fifth month. On prices, input cost inflation hit its highest since January 2023, driven by higher wages, raw materials, fuel, and energy costs, partly linked to Middle East tensions, and a weaker yen. Output prices rose at a record pace for the series. Finally, business confidence fell for a second month to its lowest since August 2020, as geopolitical uncertainty weighed on the outlook.

Japan’s S&P Global Composite PMI Japan edged up to 53.0 in March 2026 from a flash estimate of 52.9, but eased from February’s 33-month high of 53.9. The latest reading marked a 12th consecutive month of private sector expansion, topping market forecasts of 52.5, though growth slowed to its weakest pace since December. Output growth moderated across both manufacturing and services, while total new orders rose at the softest pace so far this year. New export orders also expanded only modestly, cooling from February’s eight-year high. Employment growth softened to a four-month low, reflecting a slower buildup in backlogs of work. On the cost side, input price inflation accelerated to an 11-month high, but firms raised selling prices at a more subdued pace. Meanwhile, business confidence slipped to its lowest level in nearly a year, pointing to a more cautious outlook ahead.

Japan’s S&P Global Composite PMI slipped to 52.9 in March from a final 53.9 in February, flash data showed. While marking a 12th straight month of expansion in private sector business, the latest result was the weakest pace since December. Both manufacturing output and services activity lost momentum, with new orders rising at the weakest rate in three months and export demand expanding only modestly. Employment growth eased to a four-month low, while capacity pressures persisted, though backlogs rose less sharply than February’s record pace. On inflation, input costs climbed at the fastest rate in nearly a year, linked to supply chain disruptions and higher energy prices from the Middle East conflict. Yet output price inflation softened to a three-month low. Finally, business sentiment fell to an 11-month low amid geopolitical uncertainty, driven by weaker expectations in the service sector, while manufacturers remained relatively optimistic.