FX.co ★ Japan Manufacturing Growth Hits A 1-Year Low

The Au Jibun Bank Japan Manufacturing PMI dropped to 48.3 in March 2025 from 49.0 in February, falling below market expectations of 49.2, as indicated by preliminary figures. This represents the most modest growth in manufacturing activity since March 2024. The decline was attributed to sharper reductions in both production and new orders, despite a rebound in foreign sales after the previous month's contraction. As a result, companies significantly reduced purchasing activities and continued to decrease their inventory levels. Employment rose for the fourth month in a row, showcasing more robust growth compared to February, while backlogs decreased more swiftly. Additionally, input delays persisted for the seventh consecutive month. On the cost front, while inflation for both input and output prices moderated, they remained elevated above the series' average levels. Overall, business sentiment showed signs of improvement.