Economic
Japan flash PMI slows in March, growth momentum cools amid rising costs
Japan’s flash composite PMI slipped to 52.5 in March 2026, showing that private‑sector growth is still positive but slowing, with stronger cost pressures weighing on activity.
S&P Global flash PMI data for Japan show that both manufacturing and services activity decelerated in March 2026. The composite output index fell to 52.5 from 53.9 in February, the weakest pace of expansion in three months, though still above the 50 threshold that separates growth from contraction. The manufacturing PMI dropped to 51.4 from 53.0, with manufacturing output slowing to 51.8 from 54.2, while the services PMI eased to 52.8 from 53.8. New‑order growth weakened to its slowest in three months, and input costs rose at the fastest pace in 11 months, as geopolitical uncertainty and higher energy prices fed through to production costs. Business confidence also slipped to near a one‑year low. This broad‑based softening suggests that the pace of economic recovery is cooling, raising the risk of slower growth ahead if cost pressures and external shocks persist.
- Status
- active
- Location
- Japan
- Date added
- 2026-03-25 14:19 UTC
- Last updated
- 2026-03-25 14:19 UTC
- Source
- https://japantoday.com
- Connected threats
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- Not Available