S&P Global deputy director for economics Annabel Fiddes said the latest PMI
shows Japan's manufacturing delivered its strongest quarterly performance in
over 12 years in June. Production expanded as client demand improved and overall
new orders rose at the fastest pace in about 4.5 years, led by AI-related
technologies and robust semiconductor demand. Growth was at least partly driven
by inventory hoarding amid the Middle East war. Supplier performance
deteriorated sharply again in June due to shipping delays and supplier
shortages, keeping inflationary pressures among the most severe since the PMI
The series began in 2001—input costs and selling prices both rose rapidly. Fiddes
warned there is significant uncertainty about whether the strength will extend
into H2, as short-term hoarding may fade, especially if costs continue rising
and customer spending weakens.
