Japan Manufacturing Growth Confirmed at Over 3-Year High

2026-02-02 00:38 By Chusnul Chotimah 1 min. read

The S&P Global Japan Manufacturing PMI stood at 51.5 in January 2026, unchanged from the preliminary reading and up from December’s final figure of 50.

This marked the first expansion in factory activity since last June, with the pace of improvement the strongest since August 2022, supported by the first upturn in new orders since May 2023 and to the greatest extent in nearly four years.

Foreign sales rose for the first time since February 2022.

Output growth was the strongest since April 2022, while employment rose at the fastest rate in 40 months.

Purchasing activity increased at the fastest pace in three-and-a-half years, while vendor performance deteriorated.

On the price front, input costs accelerated to their highest level in nearly a year, driven by higher raw material and labor costs amid a weak yen.

Output price inflation rose at the fastest pace in over a year and a half.

Finally, business sentiment weakened to a three-month low amid concerns over inflation.



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Japan Manufacturing Growth Confirmed at Over 3-Year High
The S&P Global Japan Manufacturing PMI stood at 51.5 in January 2026, unchanged from the preliminary reading and up from December’s final figure of 50. This marked the first expansion in factory activity since last June, with the pace of improvement the strongest since August 2022, supported by the first upturn in new orders since May 2023 and to the greatest extent in nearly four years. Foreign sales rose for the first time since February 2022. Output growth was the strongest since April 2022, while employment rose at the fastest rate in 40 months. Purchasing activity increased at the fastest pace in three-and-a-half years, while vendor performance deteriorated. On the price front, input costs accelerated to their highest level in nearly a year, driven by higher raw material and labor costs amid a weak yen. Output price inflation rose at the fastest pace in over a year and a half. Finally, business sentiment weakened to a three-month low amid concerns over inflation.
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