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Japan’s combined Manufacturing & Services Purchasing Managers’ Index (PMI) eased in May, pointing to a moderation in private-sector growth. The composite indicator fell to 51.10 in May 2026 from 52.20 in the previous month, based on month‑over‑month comparisons updated on 3 June 2026.
While the PMI remains above the 50-point threshold that separates expansion from contraction, the decline suggests that the pace of growth in Japan’s manufacturing and services sectors has cooled. The “Actual” reading for May reflects a softer improvement than in the previous month, when the “Previous” PMI comparison had indicated stronger momentum relative to the month before it.
The latest data will be closely watched by investors and policymakers as they assess whether this slowdown is temporary or the start of a broader loss of traction in Japan’s private-sector recovery. With both manufacturing output and services activity feeding into the composite PMI, any further easing could influence expectations for corporate earnings and the policy outlook in the months ahead.
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