Japan Factory Growth Slows as Input Costs Surge in May
The S&P Global Japan Manufacturing PMI dipped to 54.5 in May from a four-year high of 55.1 as rising raw material prices and Middle East tensions pressured producers. While export orders grew at the fastest pace since 2021, surging input costs and inventory stockpiling tempered overall expansion.
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Japan manufacturing growth slowed in May as surging input costs and geopolitical tensions offset a record rise in export orders. The final S&P Global Japan Manufacturing PMI fell to 54.5 from April's four-year high of 55.1, matching the preliminary reading. For investors, the data signals a squeeze on margins despite robust global demand for electronics and AI-related hardware.
