Japan's private sector expansion decelerates in March

Japan’s Economic Growth Slows in March

According to the latest S&P Global Flash PMI® figures, Japan experienced a more moderate increase in both manufacturing and services activity in March. This resulted in the slowest overall growth in private sector output seen in the past three months.

During this period, Japanese businesses also saw smaller gains in new orders and hiring. Business optimism for the coming year dropped to its lowest point in nearly twelve months, with ongoing conflict in the Middle East cited as a major concern. This situation has contributed to rising inflation, as input costs climbed at their fastest pace in almost a year.

By the end of the first quarter, the main seasonally adjusted index stood at 52.5, reflecting these trends.