FX.co ★ Japan Manufacturing Shrinks the Least in 3 Months

The preliminary data for November 2025 indicates that the S&P Global Japan Manufacturing PMI advanced to 48.8 from October's 48.2, which represented the lowest point in 19 months. Despite signaling a contraction in factory activity for the fifth month in a row, this was the mildest decline recorded since August, suggesting a trend towards stabilization. However, new orders still faced challenges due to decreasing foreign demand. On the pricing front, input costs continued to rise, driven by increasing prices of raw materials. Consequently, output prices also saw an uptick as companies transferred these higher costs to consumers. Looking forward, business sentiment showed improvement, buoyed by anticipation of new product launches and innovations, alongside hopes for stronger domestic and international demand.