Japan Composite PMI Slips to 4-Month Low

2026-09-24 00:33 By Farida Husna 1 min. read

Japan’s S&P Global Composite PMI Business Activity Index edged down to 52.5 in September 2026 from a final 53.5 in August, flash data showed.

It was the weakest reading since May, with factory output falling to a three-month low, while services activity grew at a softer, modest pace.

Total new orders eased despite another marked increase in new export work, with export growth holding at August’s 8-1/2-year high.

Employment rose for the third year, with payroll growth accelerating to its fastest pace since February.

Outstanding business accumulated the most in seven months.

On prices, input cost inflation eased to a four-month low but remained elevated, reflecting higher energy and raw material costs linked partly to the Middle East war and a weaker yen, alongside rising staff and transport expenses.

Firms raised selling prices at a pace only slightly below August’s record.

Finally, sentiment hit a seven-month high on optimism over demand in AI, semiconductors, defence and automobiles.



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Japan Composite PMI Slips to 4-Month Low
Japan’s S&P Global Composite PMI Business Activity Index edged down to 52.5 in September 2026 from a final 53.5 in August, flash data showed. It was the weakest reading since May, with factory output falling to a three-month low, while services activity grew at a softer, modest pace. Total new orders eased despite another marked increase in new export work, with export growth holding at August’s 8-1/2-year high. Employment rose for the third year, with payroll growth accelerating to its fastest pace since February. Outstanding business accumulated the most in seven months. On prices, input cost inflation eased to a four-month low but remained elevated, reflecting higher energy and raw material costs linked partly to the Middle East war and a weaker yen, alongside rising staff and transport expenses. Firms raised selling prices at a pace only slightly below August’s record. Finally, sentiment hit a seven-month high on optimism over demand in AI, semiconductors, defence and automobiles.
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