The S&P Global Japan Manufacturing PMI climbed to 53.0 in February 2026 from 51.5 in January, beating the preliminary estimate of 52.8. The latest reading signaled a stronger recovery in operating conditions, with growth in output, new orders, and employment all accelerating from the previous month. This was the sharpest expansion in Japan’s manufacturing sector since May 2022.
Production rose at a solid rate, the fastest in just over four years, with many firms attributing the increase to stronger inflows of new business. Total new orders likewise expanded robustly, posting their quickest rise since January 2022. Employment in the manufacturing sector continued to grow in February, extending the current run of job creation to 15 consecutive months.
On the cost side, higher prices for raw materials, labor, and transportation drove a further increase in average input costs during the month. Looking ahead, the 12‑month outlook strengthened to its highest level since June 2024, as manufacturers remained confident that improving global demand and new product launches will continue to underpin growth.
