FX.co ★ Japan Manufacturing Sector Returns to Growth

In January 2026, the S&P Global Japan Manufacturing PMI rose to 51.5, surpassing both the final reading from December 2025 and market expectations of 50, according to preliminary estimates. This increase signifies the first expansion in manufacturing activity since last June, though it remains modest. The growth was bolstered by the first rise in sales since May 2023, with a notable increase in foreign sales—the first in nearly four years. In response to increased capacity, companies expanded their workforce at the most rapid rate since April 2019. On the pricing front, both input and output cost inflation saw an acceleration. Looking forward, business sentiment has weakened due to uncertainties surrounding global economic conditions.