Japan's Manufacturing Hits 12-Year High in June, New Business Growth Fastest in 4.5 Years

According to S&P Global, Japan's manufacturing sector achieved its strongest quarterly performance in over 12 years in June, driven by improved customer demand and robust production expansion.

New business growth accelerated to its fastest pace in 4.5 years, with demand for artificial intelligence-related technologies and semiconductors particularly strong. However, supply chain disruptions intensified, with shipping delays and supplier shortages further deteriorating vendor performance. Input costs and selling prices rose sharply again, with inflationary pressures now at their most severe level since the PMI survey began in 2001.