Japan Manufacturing Growth at 7-Month Low

2026-09-24 00:35 By Chusnul Chotimah 1 min. read

The S&P Global Japan Manufacturing PMI declined to 54.1 in September 2026 from 54.9 in the previous month, below market expectations of 55.0, marking the ninth consecutive month of expansion in factory activity, preliminary estimates showed.

It was the softest expansion in the manufacturing sector since February, as firms recorded softer increases in output and new orders.

Output growth eased to a three-month low, as firms recorded sales growth at its weakest in four months.

The slowdown came despite a further marked increase in foreign sales, with the rate of growth unchanged from August's eight-and-a-half-year high.

Meanwhile, delivery times lengthened further amid reports of supplier shortages, while purchasing activity eased, inventories of inputs rose slightly, and employment continued to increase.

On the price front, input and output prices rose, driven by higher energy and raw material prices, as well as a weak yen.

Lastly, sentiment improved due to hopes of continued demand.



News Stream
Japan Manufacturing Growth at 7-Month Low
The S&P Global Japan Manufacturing PMI declined to 54.1 in September 2026 from 54.9 in the previous month, below market expectations of 55.0, marking the ninth consecutive month of expansion in factory activity, preliminary estimates showed. It was the softest expansion in the manufacturing sector since February, as firms recorded softer increases in output and new orders. Output growth eased to a three-month low, as firms recorded sales growth at its weakest in four months. The slowdown came despite a further marked increase in foreign sales, with the rate of growth unchanged from August's eight-and-a-half-year high. Meanwhile, delivery times lengthened further amid reports of supplier shortages, while purchasing activity eased, inventories of inputs rose slightly, and employment continued to increase. On the price front, input and output prices rose, driven by higher energy and raw material prices, as well as a weak yen. Lastly, sentiment improved due to hopes of continued demand.
2026-09-24
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.
2026-09-01
Japan Factory Activity Growth Hits 4-Month High
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.
2026-08-21