July data shows Japan’s private sector growth accelerated, driven by manufacturing resilience and rising new orders.
Japan’s Composite PMI climbed to 53.1 in July from 52.8 in June, marking its highest level since February and extending a 16-month growth streak. The increase was underpinned by a stronger manufacturing sector, which posted a reading of 54.7, exceeding expectations.
The manufacturing PMI’s outperformance reflected robust output and a surge in new orders, offsetting softer service sector activity. June’s composite PMI had signaled steady expansion, but July’s uptick suggests a broad-based improvement in business conditions.
The data reinforces expectations of sustained economic momentum, though analysts caution against overinterpreting short-term fluctuations amid global trade uncertainties.