Japan Composite PMI Hits 17-Month High

2026-01-23 00:38 By Farida Husna 1 min. read

Japan’s S&P Global Composite PMI rose to 52.8 in January 2026 from 51.1 in December, the highest reading since August 2024, flash data showed.

It marked the 11th consecutive month of private-sector expansion, supported by the strongest growth in services activity since July and the first, albeit modest, rise in manufacturing output in seven months.

New orders increased at the fastest pace since May 2024, while foreign demand expanded for the first time since March.

Backlogs surged at the quickest rate since the series began in 2007, adding capacity pressures.

Employment rose at the strongest pace since April 2019.

On costs, input price inflation eased from December’s eight-month high but stayed elevated, while output prices rose the most in 20 months.

Finally, sentiment, however, slipped to its lowest since October, weighed by rising costs, global uncertainty, labor shortages, and demographic challenges, though optimism remained broadly aligned with the survey’s long-term average.



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