Japan’s S&P Global Composite PMI Business Activity Index was revised higher to 52.8 in June 2026 from the flash estimate of 52.5, marking its highest level since March and extending the sector’s expansion streak to 15 consecutive months.
The improvement came as service providers reported stronger business activity, while manufacturing output also continued to recover.
New orders rose at the fastest pace since February, supported primarily by domestic demand, although foreign demand increased only marginally.
Firms also reported the strongest accumulation of backlogged work in four months, prompting a slightly faster, though still modest, increase in hiring.
On the price front, cost pressures intensified, with input prices rising at the sharpest pace in four years, reflecting higher labor, raw material, and operating costs.
Businesses continued to pass part of these higher costs on to customers, although output price inflation eased from May’s record high and remained elevated overall.