Japan’s PMI Services was finalized at 53.7 in January, up from December’s 51.6. PMI Composite rose to 53.1 from 51.1. The data point to a clear acceleration in private-sector activity at the start of 2026, with growth firmly back above expansionary levels.
According to Annabel Fiddes of S&P Global Market Intelligence, business activity rebounded at the fastest pace since May 2023. Services remained the primary growth engine, posting the strongest rise in activity in nearly a year, while manufacturing output also returned to growth for the first time since last June.
The surveys suggest the recovery is becoming more broad-based. Demand improved across both manufacturing and services simultaneously for the first time in more than two-and-a-half years, a notable shift after a prolonged period of uneven momentum. Employment was another bright spot, with firms adding staff across both sectors to expand capacity in response to stronger demand.
Cost pressures eased at the start of the year, with input prices rising at their slowest pace in almost two years. However, companies raised selling prices more aggressively, indicating efforts to rebuild margins.
