The S&P Global Japan Manufacturing PMI slipped to 53.3 in October 2026 from 54.1 in September, falling short of market expectations of 54.5, according to preliminary estimates. This marked the slowest pace of expansion in the manufacturing sector since March, as firms reported weaker growth in both output and new orders, each rising at its softest rate in seven months.
Employment continued to expand, with job creation increasing at a moderate pace. Purchasing activity also rose, leading to the largest build-up in input inventories in nearly four years. At the same time, suppliers’ delivery times lengthened significantly.
On the price front, both input costs and output charges continued to increase. Looking ahead, business confidence remained positive.