Japan’s S&P Global Composite PMI Business Activity Index eased to 52.3 in September 2026, down from 53.5 in August and below the flash estimate of 52.5. Although this marked the 18th consecutive month of private-sector expansion, it was the slowest pace of growth since May, with activity moderating in both manufacturing and services.
Total new business rose at a gentler and more moderate rate, while new export orders remained robust, driven entirely by the manufacturing sector. Employment increased at its fastest pace since February, accompanied by a stronger rise in backlogs of work, pointing to persistent capacity pressures.
On the pricing front, inflationary pressures stayed historically elevated, though the rates of increase in both input costs and output charges eased compared with August. Finally, business confidence climbed to a seven-month high, indicating that firms remain optimistic about activity over the year ahead.
