FX.co ★ Japan Composite PMI Revised Upward

The au Jibun Bank Japan Composite PMI registered 48.9 in March 2025, slightly above the preliminary estimate of 48.5 but down from February's figure of 52.0. This indicates the first contraction in private sector activity since October and the most pronounced decline since November 2022. A more significant drop in manufacturing output coupled with stagnation in the service sector contributed to this downward shift. New orders demonstrated the weakest growth in four months, owing to decelerated sales in the service sector alongside a continued decrease in manufacturing orders. Employment remained on a slight upward trajectory in both manufacturing and services. On the cost side, inflationary pressures persisted, with composite input prices rising at their quickest pace in seven months. Conversely, the inflation rate for output charges decreased to its lowest in five months. Finally, business sentiment plummeted to its lowest level since January 2021, spurred by apprehensions about the global economic landscape and an unpredictable trade environment.