May’s composite PMI fell to 51.1 as services stagnated and selling prices rose at the fastest pace in nearly 19 years.
Japan’s flash composite PMI declined to 51.1 in May from 52.2 in April, marking the slowest expansion in five months. The drop reflects stagnant services activity and the sharpest rise in selling prices since the survey began nearly 19 years ago.
Manufacturing remained resilient at 54.5, though output growth slowed, partly due to stockpiling tied to Middle East supply disruptions. Services activity stalled at 50.0, the first contraction in over a year, while input costs surged amid geopolitical tensions and raw material shortages.
Employment growth decelerated to a seven-month low, and business confidence improved slightly but remained historically weak. The data underscores persistent inflationary pressures and subdued economic momentum.