Japan PMI Signals Private-Sector Slowdown as Mideast War Stokes Worry -- Market Talk

Dow Jones03-24

0157 GMT - Momentum across Japan's private sector cooled in March, tempering a solid start to 2026 as the war in the Middle East creates uncertainty, S&P Global flash PMI data show. New orders and employment weakened, and firms' confidence in the year ahead slipped to the lowest in nearly a year. That coincides with the start of the war, which contributed to a sharp rise in input costs amid reports of supply chain difficulties and higher fuel prices, says Annabel Fiddes at S&P Global Market Intelligence. A weak yen exchange rate and rising labor costs added to the expenses, further squeezing company margins. Firms are less confident about output due to the war, with services companies notably more downbeat than manufacturers, who hope demand across industries like AI and defense will sustain growth. (fabiana.negrinochoa@wsj.com)

 

(END) Dow Jones Newswires

March 23, 2026 21:57 ET (01:57 GMT)

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