Japan Manufacturing Growth Eases Slightly

The S&P Global Japan Manufacturing PMI inched down to 54.7 in July 2026 from 54.8 in the previous month, but surpassed market expectations of 54.5, preliminary estimates showed. It was the seventh straight month of expansion in factory activity, supported by faster increases in output, while new orders grew at the fastest pace in over five years. Meanwhile, employment increased at a faster pace. Purchasing activity rose at the fastest pace in more than four years, feeding through to higher stocks of purchases amid ongoing supply chain disruption and higher prices linked to the conflict. Stocks of finished goods also rose, marking the first increase in two years. On the price front, input price inflation eased, while output price inflation slowed to a three-month low. Finally, business sentiment improved to its highest level in four months, supported by hopes of new product launches and stronger demand, notably in the AI and semiconductor industries.




