Japan’s flash composite PMI rose to 52.5 in June
Japan’s flash composite PMI increased to 52.5 in June, its strongest in three months. The manufacturing PMI was 54.9, exceeding expectations of 54.5.
The input cost reading surged to a near four-year high, driven by Middle East war-related energy and raw material costs. This inflation acceleration reinforces the BOJ’s recent rate hike to 1% and keeps further tightening on the table.
Manufacturing payrolls rose at their fastest pace in over eight years, a striking labour market signal. The divergence between strong output and muted year-ahead confidence reflects the tension between solid current conditions and an uncertain forward path.