S&P Global’s preliminary June Japan PMI showed overall business activity rose
for the first time since the outbreak of the Middle East war; seasonally
adjusted composite output index increased from 51.1 in May to 52.5, signalling
stronger demand. S&P GLOBAL MARKET INTELLIGENCE’s Annabel Fiddes said part of
the expansion is driven by war-related restocking and may be temporary as
inventories fill and cost pressures intensify. The survey recorded the largest
rise in input costs in nearly four years, lifting average selling prices, with
inflation and supply-chain disruption continuing to weigh on firms’ outlook.
