FX.co ★ Japan Private Sector Growth Revised Higher

Japan’s S&P Global Composite PMI Business Activity Index rose to 53.5 in August 2026, up from a flash estimate of 53.4 and July’s 52.7. This marked the 17th consecutive month of expansion in private-sector activity and the strongest reading since February, driven by another sharp increase in manufacturing output and firmer growth in services.

Total new orders grew at one of the fastest rates in three years, pointing to stronger underlying demand. Employment continued to inch higher as backlogs of work accumulated, underscoring ongoing capacity pressures.

On the price front, input costs increased sharply in both manufacturing and services, though overall input cost inflation eased to its lowest level since March. In contrast, output charges (selling prices) rose at the quickest pace since the survey began in 2007, indicating that firms are still actively passing higher costs on to customers.