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India and Japan Lead Factory Rebound in Flash PMIs as Costs Climb

War-driven supply snarls are lifting costs across the region.

People wait in line outside a restaurant in Paris, France, October 26, 2025. REUTERS/Jeenah Moon
People hold a patio umbrella in a strong wind outside a restaurant in Berlin, Germany February 17, 2022. REUTERS/Michele Tantussi
India's Commerce Minister Piyush Goyal speaks at the India-Korea Business Forum at Bharat Mandapam in New Delhi, India, April 20, 2026. REUTERS/Bhawika Chhabra
A worker gestures as he works at a steel processing production line of a factory in Mandi Gobindgarh, in the northern state of Punjab, India, August 14, 2025. REUTERS/Bhawika Chhabra//File Photo

Overview

  • Flash purchasing managers’ surveys published Thursday, where readings above 50 signal growth, showed India’s composite at 58.3, Japan’s manufacturing at 54.9, and Australia back to 50.1.
  • S&P Global said some Japanese factories raised output to get ahead of possible shortages tied to the Middle East conflict.
  • Firms reported longer delivery times and higher fuel and freight bills, and many built buffer stocks to protect against supply shocks.
  • Price pressures intensified, with Australia’s input costs at the highest since August 2022 and Japan’s selling price inflation at a survey record.
  • Demand signs split as manufacturers reported stronger export orders, services exports weakened, business confidence slipped, and India’s hiring rose to a 10‑month high.