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.



News Stream
Japan Private Sector Growth Revised Slightly Lower
Japan’s S&P Global Composite PMI Business Activity Index eased to 52.3 in September 2026 from 53.5 the previous month and a flash estimate of 52.5. While marking the 18th consecutive month of private-sector expansion, the latest result was the slowest growth since May, with activity growth moderating across both manufacturing and services. Total new business increased at a softer and more modest pace, while new export business remained solid, driven entirely by manufacturers. Employment rose at its fastest pace since February, alongside a stronger increase in backlogs of work, suggesting continued capacity pressures. On prices, inflationary pressures remained historically elevated, although growth in input costs and output charges eased from August. Finally, business confidence improved to a seven-month high, indicating firms remained optimistic about activity over the coming year.
2026-10-05
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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Japan’s S&P Global Composite PMI Business Activity Index was at 53.5 in August 2026, up  from a flash reading of 53.4 and July's 52.7. It marked a 17-month expansion streak in private-sector activity and the highest reading since February, led by another sharp rise in manufacturing output alongside firmer services growth. Total new orders climbed at one of the quickest rates in three years, signaling stronger underlying demand. Employment continued to edge higher as backlogs grew, underscoring persistent capacity pressures. On prices, input costs rose sharply across manufacturing and services, though inflation eased to its lowest since March. In contrast, selling prices increased at the fastest pace since the survey began in 2007, highlighting firms’ continued pass-through of higher costs to customers.
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