FX.co ★ Japan Composite PMI Revised Slightly Higher

The au Jibun Bank Japan Composite PMI reached 51.2 in April 2025, surpassing the preliminary estimate of 51.1 and recovering from March's almost 2.5-year low of 48.9. This signifies the fifth growth in private sector activity within the last six months, largely fueled by a resurgence in the service sector, despite ongoing declines in factory output. New orders increased for the sixth month in a row, albeit slightly, buoyed by the most substantial rise in service sector sales seen in nearly a year. In contrast, manufacturers experienced the most significant decrease in new orders since February 2024. Employment growth climbed to a three-month peak, with workforce numbers rising in both manufacturing and services, led by a more pronounced hiring rate in the service sector. Regarding costs, overall input price inflation accelerated to a two-year high, driven by a notable increase in service sector costs. Consequently, there was a modestly faster rise in overall selling prices.