FX.co ★ Japan Composite PMI Hits 3-Month High

Japan’s S&P Global Composite PMI rose to 52.5 in June 2026 from a final 51.1 in May, according to flash estimates. This was the highest reading since March, signaling a 15th consecutive month of expansion in private-sector activity and remaining above the post-pandemic average.

Growth was underpinned by the strongest rise in manufacturing output since January 2022, while services activity recorded only modest gains. New orders increased at the fastest pace in four months, supported by a slight pickup in foreign demand. Backlogs of work also grew at the quickest rate in four months, although employment rose only modestly following May’s seven-month low.

On the inflation front, input costs accelerated for a fifth consecutive month to their highest level since July 2022, driven by increased energy, fuel, and raw material prices associated with the conflict in the Middle East. However, output price inflation eased from May’s record high.

Business sentiment weakened further and stayed below its long-run average, reflecting ongoing supply chain disruptions linked to the Middle East conflict and persistent labor shortages.