Japan’s S&P Global Composite PMI came in at 51.1 in May 2026, in line with the flash estimate and marking a 14th consecutive month of expansion in private sector activity. That said, the index was down from 52.2 in April and signaled the slowest pace of growth since December. Overall expansion was sustained solely by firmer manufacturing output, while activity in the services sector was broadly unchanged.
New business continued to increase but at the weakest rate in five months, indicating only modest demand growth. External demand also lost momentum, with overseas orders for Japanese goods and services rising at their slowest pace so far this year.
Employment growth eased to a seven-month low, contributing to a quicker buildup of unfinished work. At the same time, cost pressures strengthened, as input prices rose at their fastest rate in 43 months. In response, firms raised their selling prices more aggressively, driving output charge inflation to a new survey record.
