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Commodity News Details
Japan manufacturing growth moderates but remains strong in May
01-Jun-2026 10:32
Japanese manufacturers continued to expand production in May, though growth eased slightly from April's peak. The headline S&P Global Japan Manufacturing PMI slipped from 55.1 in April to 54.5 in May, still signaling a marked improvement in business conditions for the fifth consecutive month.

Output rose solidly, supported by stronger sales and inventory building amid supply chain disruptions linked to the Middle East war. New orders grew at a softer pace, but export demand surged at the fastest rate in five years. Intermediate goods makers led the upturn.

Purchasing activity increased at the quickest rate in four years as firms sought to safeguard against shortages and price hikes. However, input delivery times lengthened sharply, limiting inventory growth. Finished goods stocks fell as orders were fulfilled.

Employment rose at the second-fastest pace in over four years, though capacity pressures persisted with rising backlogs. Input costs climbed to their highest since September 2022, driven by metals, oil-based products, labor, and transport. Selling prices rose at the fastest rate since October 2022.

Business confidence improved from April's one-year low, supported by demand and electronics growth, but remained below average due to geopolitical uncertainty and rising costs.

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