FX.co ★ Japan Manufacturing Grows for 1st Time in 13 Months

The latest preliminary estimates reveal that the au Jibun Bank Japan Manufacturing PMI rose to 50.4 in June 2025, up from 49.4 in May. This signifies the first growth in the sector since May 2024. The recovery was backed by renewed increases in production and inventory purchases, coupled with a slightly accelerated rise in employment. However, backlogs of work saw a gentler reduction. Demand conditions, however, continued to be subdued, as both overall new business and international sales declined again in June, affected by newly implemented US tariffs. The decline in purchasing activity slowed, yet supplier delivery times saw a more pronounced delay. On the pricing front, input cost inflation remained near its 14-month low from May, but was still high, while output price inflation was among the lowest observed over the past four years. Lastly, business confidence showed little change and continued to be lower than the historical average.