Japan manufacturing hits best quarterly pace since 2014 as new orders surge

Robust PMI data from Tokyo contrasts sharply with contraction in the euro zone, highlighting a widening divergence in global growth momentum.

By Handelsavisen Newsroom · Automated 2026-07-01 00:56 UTC · 1 min read

Japan’s manufacturing sector expanded in June, marking the strongest quarterly performance for the industry since the first quarter of 2014.

The latest Purchasing Managers’ Index (PMI) survey indicates that new orders grew at their fastest pace in more than two years, signaling a significant acceleration in demand for Japanese goods.

The data underscores a growing divergence in global economic momentum.

While Japanese factories are ramping up activity, private sector activity in the euro zone contracted for a third consecutive month in June.

Although the pace of decline in Europe moderated compared to previous readings, the contrast with Japan’s expansion is stark.

Germany, the euro zone’s largest economy, saw its private sector activity contract to its weakest level in a year and a half, according to separate PMI data.