Japan’s S&P Global Composite PMI eased to 52.9 in March from a final 53.9 in February, according to flash estimates. Although this marked the 12th consecutive month of expansion in private sector activity, it was the slowest pace of growth since December.
Both manufacturing output and services activity lost momentum. New orders increased at the weakest rate in three months, and export demand grew only modestly. Employment growth slowed to a four-month low, while capacity pressures remained evident, though the accumulation of backlogs was less pronounced than February’s record pace.
On the price front, input costs rose at the fastest rate in nearly a year, reflecting supply chain disruptions and higher energy prices linked to the conflict in the Middle East. However, output price inflation eased to a three-month low.
Business sentiment deteriorated to an 11-month low amid heightened geopolitical uncertainty. This decline was driven primarily by weaker expectations in the services sector, while manufacturers remained comparatively optimistic.
