Japan’s Manufacturing PMI was finalized at 50.1 in June, rising from 49.4 in May. While production and employment ticked higher, underlying demand remained weak.
According to S&P Global’s Annabel Fiddes, firms reported continued declines in both domestic and overseas sales, reflecting the lingering impact of global uncertainty—particularly around US tariff policy.
Despite soft demand, business sentiment improved, encouraging firms to boost output and hiring. However, Fiddes emphasized that a “renewed and sustained improvement in customer demand” is still needed to drive a broader recovery.
Price pressures also “picked up slightly”, with both input costs and selling prices rising above their long-term averages, suggesting inflationary risks remain embedded in supply chains.
