FX.co ★ Japan Manufacturing Expansion Strengthens in June

The S&P Global Japan Manufacturing PMI rose to 54.9 in June 2026, surpassing both the previous month’s reading and market expectations of 54.5, according to preliminary estimates. This marked the sixth consecutive month of expansion in factory activity, underpinned by a quicker increase in output, which recorded its second-fastest growth since January 2022.

New orders also accelerated, with overall sales registering their strongest rise since January 2022. This was partly driven by client stock-building in response to ongoing supply chain disruptions and concerns about future price increases linked to the Middle East conflict. In contrast, export sales grew at a slightly slower pace.

Employment rose at its fastest rate in more than eight years. On the price front, both input costs and output charges increased. Despite these pressures, business sentiment remained firmly in positive territory.