Japan Manufacturing Expansion Strengthens in June

The S&P Global Japan Manufacturing PMI increased to 54.9 in June 2026, above both May’s reading and market expectations of 54.5 and close to April’s 55.1, which marked the strongest expansion since January 2022, preliminary estimates showed. It was the sixth straight month of growth in factory activity, supported by faster growth in output and new orders. Output growth was the second-quickest since January 2022. New orders grew at a faster pace, with sales rising at their fastest rate since January 2022, partly driven by client stock-building amid ongoing supply disruptions and concerns over future price increases related to the Middle East conflict, while foreign sales rose at a slightly slower pace. Meanwhile, employment increased at the steepest pace in more than eight years. On prices, input and output inflation eased but remained near their highest levels since late 2022, boosted by higher energy, fuel, and raw material costs. Meanwhile, sentiment remained in positive territory.

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