Japan’s S&P Global Composite PMI Business Activity Index was revised down to 52.7 in July 2026 from the flash estimate of 53.1 and slightly below June’s 52.8. Despite the downward revision, the reading remained the highest since February and signaled a 16th consecutive month of expansion in private-sector activity.
Growth was uneven across sectors. Manufacturing led the upturn, with factory output recording its strongest increase since early 2014. In contrast, services activity continued to expand but at a slower and more moderate pace.
New orders rose again, though the rate of growth softened, while export demand strengthened further. Employment increased for the 34th consecutive month, but hiring momentum eased slightly compared with June, accompanied by a slower build-up of work backlogs.
On the price front, input costs continued to climb at a historically elevated rate, even as cost inflation cooled to a three-month low. Firms responded by passing higher costs on to customers, raising output charges at the second-fastest pace since the survey began in late 2007.
