Japan Composite PMI Revised Slightly Higher

Japan’s S&P Global Composite PMI rose to 53.9 in February 2026, slightly higher than the preliminary estimates of 53.8, and picking up from 53.1 in January, marking the fastest expansion in overall private sector activity since May 2023. Growth was supported by a solid gain in services activity alongside a notably quicker rise in manufacturing output. Overall new orders increased at the strongest pace in 33 months, while new export business expanded at the fastest rate in eight years, driven by stronger external demand for manufactured goods.Employment continued to rise at a solid but slightly slower pace, and backlogs of work accumulated amid rising workloads. Input costs climbed sharply, and selling prices increased to the greatest extent since May 2024 as firms passed on higher expenses to customers.

Japan’s S&P Global Composite PMI rose to 53.8 in February 2026 from a final 53.1 in the previous month, flash data showed. It marked the highest level since May 2023, driven by faster growth in both manufacturing output and services activity. Overall sales rose at the quickest pace in nearly three years, while new export orders expanded at the strongest rate in eight years, reflecting a sustained rebound in goods demand. Employment continued to increase at a solid pace, though slightly easing from January’s multi-year high. Backlogs of work accumulated at the fastest rate since composite records began in September 2007, underscoring capacity pressures. On the price front, both input costs and output charges rose at slightly faster rates. Looking ahead, business confidence reached a 15-month high, supported by new product launches, stronger tech demand, and the recent landslide election victory of the Takaichi administration.

Japan’s S&P Global Composite PMI rose to 53.1 in January 2026, above the flash estimate of 52.8 and up from 51.1 in December. The latest reading marked the 11th straight month of private-sector expansion and the fastest growth pace since May 2023. Momentum was driven by a stronger pickup in services activity alongside a renewed increase in factory output. New orders expanded at the quickest rate since May 2024, reflecting broad-based gains in demand for both goods and services. Export orders also returned to growth for the first time since last March and at the strongest pace in more than four years. Firms continued to raise staffing levels at a solid clip as order backlogs accumulated. While overall cost pressures eased, selling price inflation accelerated to its fastest rate in over 18 months.