FX.co ★ Japan Composite PMI Stays at 4-Month Low

Japan’s S&P Global Composite PMI Business Activity Index held at 52.3 in October 2026, unchanged from September’s final reading, according to flash estimates. This marked the 19th consecutive month of private-sector expansion, though the pace of growth remained the weakest since May.

Services activity strengthened, but manufacturing output recorded its slowest increase since March. Overall new orders rose at their most subdued rate in three months, even as new export orders continued to grow. Employment expanded at the weakest pace in 14 months, with hiring trends differing notably between sectors, while backlogs of work continued to build.

On the price front, input costs rose sharply, but output charge inflation eased to a four-month low. At the same time, persistent inflation concerns weighed on sentiment, pushing year-ahead output expectations down to their lowest level since July.