FX.co ★ Japan Manufacturing PMI Revised Downward

The S&P Global Japan Manufacturing PMI for July 2026 was revised down to 54.5 from a preliminary 54.7, after a final reading of 54.8 in June. Despite the slight downward revision, the index signaled a seventh consecutive month of expansion in factory activity. Output grew at its fastest pace since early 2014, underpinned by the steepest increase in new orders in four-and-a-half years. Employment rose solidly, while backlogs of work increased for a seventh straight month and at the quickest rate since February 2014. Purchasing activity expanded for a fourth consecutive month, with the pace of accumulation the strongest since May 2024, and stocks of finished goods moved close to stabilization. At the same time, suppliers’ delivery times lengthened notably. On the price front, input cost inflation slowed to a four-month low, even as output prices recorded a sharp increase. Finally, business confidence strengthened to its highest level in four months, supported by expectations of firmer demand, particularly for semiconductors.