FX.co ★ Japan Composite PMI Slips to 5-Month Low

In October 2025, the S&P Global Japan Composite PMI dropped to 50.9 from a final figure of 51.3 in September, as indicated by preliminary data. This decrease suggests the slowest growth since May and marks the second consecutive month of decelerated expansion. The service sector exhibited growth at its slowest rate in four months, while manufacturing output experienced a slight increase in its contraction rate. New orders saw their first decline in 16 months, although the decrease was minimal, and foreign demand reduced once more, though at a slower rate than in the previous four months. Employment figures continued their upward trend, marking a two-year streak of job growth, yet the hiring rate was below recent averages. For the first time since May, backlogs of work diminished, signaling reduced capacity pressures. On the financial front, input costs surged, driven by heightened expenses for labor, raw materials, and fuel, coupled with a weaker yen. Consequently, output charges escalated at their highest rate in three months. Finally, business confidence slipped below the long-term average for this series, indicating increased uncertainty.