Japan Manufacturing PMI Revised Downward

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.





