FX.co ★ Japan Manufacturing PMI Revised Slightly Upward

The Au Jibun Bank Japan Manufacturing PMI for March 2025 was adjusted to 48.4, up from the preliminary estimate of 48.3, though still below February's figure of 49. This indicates a ninth straight month of contraction in the sector. The downturn in factory activity remains the most significant since March 2024, with companies experiencing sharper decreases in both production and new orders due to lackluster demand from domestic and international markets. In response, firms significantly reduced their purchasing activities and continued to lower their inventory levels. Despite the sluggish output and demand trends, businesses expanded their workforce, marking the fastest job creation rate seen in 2025 to date. On the cost front, input costs increased, driven by rising expenses for labor, materials, energy, and transportation, combined with an unfavorable exchange rate. Consequently, output grew, although inflation eased to its lowest point in five months. Sentiment slightly improved but remained the second-lowest since April 2022.