Japan's manufacturing expansion slows to six-month low; BOJ maintains hawkish stance
In September 2026, Japan’s manufacturing sector expanded at a slower pace than in previous months, with the final S&P Global Japan Manufacturing PMI reading at 54.1 — unchanged from its preliminary estimate and marking a six-month low. Despite this moderation, domestic equities experienced strong gains as investors appeared to discount hawkish signals from the Bank of Japan (BOJ). The BOJ's continued tightening stance has raised concerns about potential impacts on economic growth. The PMI data suggests that while expansion remains in place, momentum is weakening across key indicators such as new orders and output. However, equity markets reacted positively due to expectations of a more accommodative policy shift or improved corporate earnings performance.
Topics: economic data Japan manufacturing PMI