Japan’s S&P Global Composite PMI Business Activity Index eased to 52.3 in September 2026 from 53.5 the previous month and a flash estimate of 52.5. While marking the 18th consecutive month of private-sector expansion, the latest result was the slowest growth since May, with activity growth moderating across both manufacturing and services. Total new business increased at a softer and more modest pace, while new export business remained solid, driven entirely by manufacturers. Employment rose at its fastest pace since February, alongside a stronger increase in backlogs of work, suggesting continued capacity pressures. On prices, inflationary pressures remained historically elevated, although growth in input costs and output charges eased from August. Finally, business confidence improved to a seven-month high, indicating firms remained optimistic about activity over the coming year.