Summary

• The headline S&P Global Japan PMI Composite Output Index rose from a five-month low of 51.1 in May to 52.5 according to the ‘flash’ reading.
• Manufacturing continued to grow at an especially encouraging pace, having in recent months enjoyed one of its best growth spurts seen over the past decade.
• While the June flash PMI brought better news on economic growth in Japan, the news on inflation remained concerning.
• Many of the recent cost pressures reflect higher energy prices resulting from the war in the Middle East, which have cooled notably in recent days.

The S&P Global Flash PMI data showed output growth staging a welcome improvement in Japan during June, rounding off a solid second quarter to point to encouraging resilience of the economy in the face of