FX.co ★ Japan Composite PMI Eases

Japan's S&P Global Composite PMI slightly declined to 51.5 in December 2025, down from a final score of 52.0 in November, the highest in three months, according to preliminary data. Despite the dip, the figures indicated nine consecutive months of private-sector growth. Manufacturing output experienced a modest decline at an accelerating rate, whereas growth in the services sector decelerated. Total new orders posted a strong rebound, achieving the most significant rise since August after two months of contraction. However, export demand faltered again, with overseas orders for manufactured goods seeing a notable decrease. On the employment front, the workforce expanded at its most rapid pace since May 2024, driven by increased job creation across both manufacturing and services sectors. Outstanding business reached its highest level in two and a half years. Regarding pricing, there was a notable increase in input cost inflation, reaching an eight-month high, with widespread rises across various industries. This led companies to hike selling prices significantly for both goods and services. Lastly, business sentiment slightly weakened but remained optimistic.