--- source: S&P Global url: https://www.pmi.spglobal.com/public document_type: pdf + official data date_retrieved: 2026-03-17 period: February 2026 parent_publication: Monthly PMI Bulletin indicators_covered: [Composite PMI, Manufacturing Output, Services Activity] --- # S&P Global Composite PMI Final — Japan, February 2026 ## Overview Japan's S&P Global Composite PMI rose to **53.9 in February 2026**, slightly higher than the preliminary estimate of 53.8, marking the fastest expansion in overall private sector activity since May 2023. The improvement was driven by accelerated growth in both manufacturing output and services activity. ## Key Findings ### Headline Reading - **Final Composite PMI: 53.9** (Flash: 53.8 | January: 53.1) - Indicates robust expansion across the private sector (readings above 50 signal growth) - Highest level since May 2023 ### Growth Drivers Japan led output growth among major developed economies in February, with momentum driven by: **Manufacturing Sector:** - Notable improvement in manufacturing output growth - Marked acceleration from previous month - Reflected sustained strength in factory activity **Services Sector:** - Solid gain in services activity - Complemented manufacturing strength - Contributed to composite expansion ### Business Activity Metrics **New Orders and Demand:** - Overall new business increased at the strongest pace in 33 months - Reflects rising demand for both goods and services - New export business expanded at the fastest rate in 8 years - Stronger external demand for manufactured goods evident **Employment:** - Employment continued to rise at a solid pace - Slightly easing from January's multi-year high - Firms maintained hiring despite subdued global business optimism **Backlogs and Capacity:** - Backlogs of work accumulated at the fastest rate since composite records began in September 2007 - Underscores significant capacity pressures - Reflects strong order intake outpacing production capacity ### Price Pressures **Input Costs:** - Input costs climbed sharply in February - Slightly faster pace of increase compared to January **Output Prices:** - Selling prices increased to the greatest extent since May 2024 - Firms passed higher input costs on to customers at accelerating rate - Producer price inflation evident across private sector ### Business Confidence - Business confidence reached a **15-month high** in February - Supported by several factors: - New product launches - Stronger technology demand - Recent landslide election victory of the Takaichi administration - Improved global trade outlook ## Regional Context ### Japan's Position Among Developed Economies - **Led growth** among major developed economies (US, UK, Canada, eurozone) - Positioned as strongest performer alongside India among largest economies - Ranked in top three globally for PMI output growth (alongside India and China) - Each posting fastest growth rates in 33 months ### Comparative Economic Landscape - **US:** Showed signs of cooling growth - **Canada:** Ongoing economic decline - **Europe:** Mixed improvement - **Eurozone:** Improved performance contrasting with developed economy slowdown - **UK:** Faster growth flash reading ### Emerging Markets Context - **China (Mainland):** Output growth rose to fastest since May 2023, though pace slightly below Japan's - **India:** Continued to report strongest upturn globally - **ASEAN Manufacturing:** Further improved performance, PMI at highest since comparable data available (2012) ## Methodology Notes The S&P Global Composite PMI Output Index is constructed as follows: - **Survey Base:** Approximately 800 companies across manufacturing and services sectors - **Weighting:** Calculated as weighted average of Manufacturing Output Index and Services Business Activity Index - **Weight Basis:** Relative size of sectors based on official GDP data - **Scale:** Diffusion index ranging from 0 to 100 - **Interpretation:** - Reading above 50 = expansion vs. previous month - Reading below 50 = contraction - **Tracked Variables:** Sales, new orders, employment, inventories, prices ## Economic Backdrop ### Global Context PMI surveys produced by S&P Global indicated an acceleration of worldwide economic growth in February 2026, prior to the outbreak of the Middle East war. Global growth was the fastest since May 2024. ### Inflation Environment - Global price growth hit highest since May 2025 - Driven by stubborn labour cost growth and rising raw material prices - Energy costs rose sharply after PMI data collection period - Further inflation likely due to Middle East conflict impact on oil prices ### Global Trade and Orders - Largest monthly influx of new business since May 2023 - Reflects rising global demand and improved international trade flows - Supply chain conditions improved notably ### Employment Trends - Employment remained largely unchanged globally despite improved order books - Reflects sustained focus on cost control - Subdued business optimism about year ahead despite February recovery ## Statistical Release Information - **Release Date:** March 4, 2026, 00:30 UTC - **Period Covered:** February 2026 (surveys conducted during February) - **Country:** Japan (JP) - **Flash Release:** March 4 (preliminary estimate of 53.8) - **Final Release:** March 4 (revised upward to 53.9) - **Source Institution:** S&P Global (formerly Markit Economics) - **Currency:** JPY ## Data Verification The 53.9 final reading for Japan's Composite PMI in February 2026 is corroborated by: - Multiple financial data aggregators (Trading Economics, Investing.com) - Official S&P Global source attribution across financial media - Consistent narrative across news outlets about Japan leading developed economy growth in February - Alignment with month-on-month improvement (Jan: 53.1 → Feb: 53.9) --- **Document Type:** Economic Indicator Release **Report Category:** Purchasing Managers' Index (PMI) — Composite **Frequency:** Monthly **Timeliness:** Flash estimate on release date, final revision same day **Availability:** Subscription basis via S&P Global; free summary data via news aggregators