Japan Manufacturing PMI August 2026: Expansion Accelerates, New Orders Surge - News and Statistics

Aug 21, 2026

Japan’s manufacturing sector expanded in August, with new orders rising at their fastest pace since January 2018, according to a business survey released on Friday. The S&P Global Flash Japan Manufacturing Purchasing Managers Index (PMI) climbed to 55.1 in August from 54.5 in July, as per a preliminary estimate by S&P Global. A reading above 50 indicates expansion.

The survey, reported by S&P Global, highlighted that growth momentum picked up across both manufacturing and service sectors, with factories leading the expansion. Production and new orders increased sharply, and manufacturers saw the steepest rise in total sales and overseas demand in over eight and a half years, driven by strong demand from semiconductor and AI-related industries.

Employment growth was led by manufacturers in August, and input buying expanded. However, stocks of purchases rose only slightly, and suppliers’ delivery times lengthened markedly. Services activity also strengthened, with the S&P Global Flash Japan Services PMI Business Activity Index rising to 52.3 from 51.2, lifting the Composite Output Index to 53.4 from 52.7, its highest since February.

Cost pressures eased from June’s near-record pace, with overall input inflation across the private sector slowing to a five-month low. Despite this, selling prices for goods and services rose at one of the steepest rates on record. Business confidence improved to its highest since February, with manufacturers more optimistic than services companies, citing expectations of higher sales, greater operational capacity, and stronger overall market conditions.

Japan’s economy slowed in the second quarter, as per GDP data released earlier in the week, but investors largely dismissed the soft reading as reflecting one-off factors. The survey’s comments suggest that Japan’s private sector remains well positioned to perform strongly going forward, provided there are no further shocks to prices or demand.

1. INTRODUCTION

Making Data-Driven Decisions to Grow Your Business

REPORT DESCRIPTION
RESEARCH METHODOLOGY AND THE AI PLATFORM
DATA-DRIVEN DECISIONS FOR YOUR BUSINESS
GLOSSARY AND SPECIFIC TERMS

2. EXECUTIVE SUMMARY

A Quick Overview of Market Performance

KEY FINDINGS
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3. MARKET OVERVIEW

Understanding the Current State of The Market and its Prospects

MARKET SIZE: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
CONSUMPTION BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
MARKET FORECAST TO 2035

4. MOST PROMISING PRODUCTS FOR DIVERSIFICATION

Finding New Products to Diversify Your Business

TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
BEST-SELLING PRODUCTS
MOST CONSUMED PRODUCTS
MOST TRADED PRODUCTS
MOST PROFITABLE PRODUCTS FOR EXPORT

5. MOST PROMISING SUPPLYING COUNTRIES

Choosing the Best Countries to Establish Your Sustainable Supply Chain

TOP COUNTRIES TO SOURCE YOUR PRODUCT
TOP PRODUCING COUNTRIES
TOP EXPORTING COUNTRIES
LOW-COST EXPORTING COUNTRIES

6. MOST PROMISING OVERSEAS MARKETS

Choosing the Best Countries to Boost Your Export

TOP OVERSEAS MARKETS FOR EXPORTING YOUR PRODUCT
TOP CONSUMING MARKETS
UNSATURATED MARKETS
TOP IMPORTING MARKETS
MOST PROFITABLE MARKETS

7. PRODUCTION

The Latest Trends and Insights into The Industry

PRODUCTION VOLUME AND VALUE: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
PRODUCTION BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)

8. IMPORTS

The Largest Import Supplying Countries

IMPORTS: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
IMPORTS BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
IMPORT PRICES BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)

9. EXPORTS

The Largest Destinations for Exports

EXPORTS: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
EXPORTS BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
EXPORT PRICES BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)

10. PROFILES OF MAJOR PRODUCERS

The Largest Producers on The Market and Their Profiles

11. COUNTRY PROFILES

The Largest Markets And Their Profiles

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