The S&P Global Japan Manufacturing PMI climbed to 51.5 in January 2026, above both the final reading of December 2025 and market forecasts of 50, preliminary estimates showed. This marked the first expansion in factory activity since last June, albeit a modest one, supported by the first upturn in sales since May 2023, with foreign sales increasing for the first time in nearly four years. Meanwhile, in response to greater capacity, firms raised employment at the fastest pace since April 2019. On the price front, both input and output cost inflation accelerated. Looking ahead, business sentiment weakened amid uncertainty over global economic conditions.