FX.co ★ Japan Manufacturing PMI Revised Higher

The S&P Global Japan Manufacturing PMI rose to 55.1 in April 2026, beating the flash estimate of 54.9 and accelerating from 51.6 in March. This marked the highest reading since January 2022. Output expanded at the fastest pace since February 2014, supported by a robust rise in new orders—the quickest increase in more than two years—as the war in the Middle East led customers to frontload purchases to guard against possible supply disruptions and higher costs. Employment rose at the second-strongest rate since early 2022. However, supply pressures intensified: backlogs grew at the sharpest pace since 2014, and delivery times lengthened by the most since 2011. Purchasing activity remained solid, though it eased slightly from March. On the price front, input costs increased at the fastest rate since October 2022, reflecting higher raw material, energy, and transportation expenses, which in turn drove selling prices to rise at their quickest pace since late 2022. Finally, business confidence deteriorated, falling to its second-lowest level since June 2020 amid heightened geopolitical risks and broader uncertainty.