Japan’s S&P Global Composite PMI edged up to 53.0 in March 2026 from a flash estimate of 52.9, but was down from February’s 33‑month high of 53.9. The latest reading signaled a 12th consecutive month of private-sector expansion and exceeded market expectations of 52.5, though the overall pace of growth slowed to its weakest since December.
Output growth eased in both manufacturing and services, while total new orders increased at the softest rate so far this year. New export orders also rose only modestly, cooling from February’s eight‑year high. Employment growth weakened to a four‑month low, in line with a slower accumulation of backlogs of work.
On the cost side, input price inflation quickened to an 11‑month high, but firms raised output prices more cautiously. At the same time, business confidence slipped to its lowest level in nearly a year, indicating a more cautious outlook ahead.
