Japan Manufacturing Growth Eases to 7-Month Low

The S&P Global Japan Manufacturing PMI declined to 53.3 in October 2026 from 54.1 in September, falling below market forecasts of 54.5, preliminary estimates showed. It was the slowest expansion in the manufacturing sector since March, as firms recorded slower increases in output and new orders, with both growing at their weakest rates in seven months. Employment continued to increase, with job creation rising moderately. Purchasing activity also increased, contributing to the largest accumulation of stocks of purchases in almost four years. Meanwhile, suppliers’ delivery times lengthened substantially. On the price front, input and output costs continued to rise. Looking ahead, business sentiment remained positive.

The S&P Global Japan Manufacturing PMI was confirmed at 54.1 in September 2026, matching the preliminary estimate and easing from 54.9 in the previous month. It was the softest expansion in the manufacturing sector since March, as firms recorded slower increases in output and new orders. Output growth eased to a three-month low, while sales growth was at its weakest in four months. The slowdown came despite a further marked increase in foreign sales, although the rate of growth eased from August's eight-and-a-half-year high. Meanwhile, delivery times lengthened further amid reports of supplier shortages, while purchasing rose slightly and inventories of inputs increased for the first time in over two years. Employment continued to increase, with job creation remaining close to August's multi-year record. On the price front, input cost inflation eased to a six-month low, while output prices continued to rise. Finally, sentiment was little changed.

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 March, 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.