FX.co ★ Japan Manufacturing PMI Revised Upward

In April 2025, the au Jibun Bank Japan Manufacturing PMI increased to 48.7, slightly higher than the preliminary estimate of 48.5 and March's 12-month low of 48.4. Despite this improvement, the index still indicated contraction for the 10th consecutive month, driven by reduced demand and escalating worries over U.S. tariffs. New orders saw a sharper decline, while overseas sales fell at the most significant rate in half a year. Output continued to decrease, albeit at the slowest rate observed in 2025. Purchasing activity decreased for the seventh consecutive month, and both input and finished goods inventories declined. Employment saw a modest rise, yet backlogs of work continued to dwindle due to insufficient new orders. Supplier performance worsened, attributed to material shortages. Inflation in input costs decreased to its lowest level in a year but remained high, fueled by increased transportation, fuel, labor, and raw material expenses. Selling prices continued their upward trend, with the rate of output charge inflation remaining above average, even though it eased to a seven-month low. Market sentiment hit its weakest point since June 2020, amid heightened concerns over global demand and escalating trade risks.