Japan Manufacturing PMI Revised Slightly Lower

The S&P Global Japan Manufacturing PMI was revised lower to 54.9 in August 2026 from the preliminary estimate of 55.1, after a final reading of 54.5 in the previous month, marking the eighth consecutive month of expansion in factory activity. Still, it was the strongest growth in the manufacturing sector since April and the second-steepest since January 2022, as firms recorded the fastest increase in new export business since January 2018. Meanwhile, employment rose solidly at the fastest pace since February 2028. Purchasing activity rose to the greatest extent since April 2022, while suppliers' delivery times further lengthened, partly due to disruptions stemming from the war in the Middle East. On the price front, input prices rose, driven by higher raw material and oil prices, as well as a weak yen. As a result, output prices continued to rise sharply. Finally, business sentiment improved to a six-month high, supported by expectations of higher sales.

The S&P Global Japan Manufacturing PMI increased to 55.1 in August 2026 from 54.5 in the previous month, marking the eighth consecutive month of expansion in factory activity. It was the strongest growth in the manufacturing sector since April, as firms recorded the fastest increase in new work since January 2018, with foreign sales also growing at the strongest pace since early 2018. Meanwhile, employment rose solidly. Input buying increased solidly due to higher production, while stock purchases grew slightly amid further lengthening of suppliers' delivery times. On the price front, input prices rose, driven by higher raw material, fuel, and staffing costs, a weak yen, and higher energy costs linked to the war in the Middle East. As a result, output prices continued to rise rapidly. Finally, business sentiment improved, supported by expectations of higher sales, greater operational capacity, and stronger market conditions.

The S&P Global Japan Manufacturing PMI was revised lower to 54.5 in July 2026 from the preliminary estimate of 54.7, following a final reading of 54.8 in the previous month. It marked the seventh straight month of expansion in factory activity, as output grew the most since early 2014, supported by the steepest rise in new orders in four-and-a-half years amid strong AI-related demand. Employment increased solidly, while backlogs of work rose for the seventh straight month and at the fastest pace since February 2014. Purchasing activity rose for the fourth consecutive month, with the rate of accumulation being the sharpest since May 2024, while stocks of finished goods neared stabilisation. Meanwhile, suppliers' delivery times lengthened markedly. On prices, input price inflation eased to a four-month low, while output prices rose sharply. Finally, business sentiment improved to its highest level in four months, supported by hopes of stronger demand, particularly for semiconductors.