Japan Composite PMI Revised Slightly Lower

Japan’s S&P Global Composite PMI eased to 52.2 in April, below the flash reading of 52.4 and down from 53.0 in March. It was the 13th straight month of private-sector expansion, though it marked the softest pace since December. Sector trends diverged, with services activity slowing while manufacturing output posted its strongest growth in more than 12 years. Total new orders continued to rise modestly, with the pace of growth edging up from March. However, foreign demand grew at the slowest rate so far this year, pointing to softer external conditions. Employment growth also remained steady as firms continued to add staff. On the price front, input cost inflation accelerated to a 42-month high, driven by rising labor and raw material costs. Firms responded by raising selling prices at the fastest pace on record. Finally, business confidence weakened sharply, falling to its lowest level since the COVID pandemic amid concerns over costs and the broader economic outlook.

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.