FX.co ★ Japan Composite PMI Highest in 4 Months

The au Jibun Bank Japan Composite PMI climbed to 51.4 in June 2025, up from a final reading of 50.2 in May, according to preliminary figures. This marks the third consecutive month of growth in private sector activity, achieving the fastest rate since February. This growth was supported by a fresh expansion in the manufacturing sector—the first uplift since May 2024—and three months of continuous growth in the services sector. Despite a boost in output and the most significant employment increase in almost a year, overall demand conditions remained tepid. New business experienced only a slight increase, as weaker foreign demand for manufactured goods adversely impacted export sales. Companies indicated that U.S. tariffs and the persistent uncertainty surrounding global trade continued to suppress customer demand. Concurrently, work backlogs rose, reversing the decline seen in May. On the cost side, input price inflation fell to its lowest point in 15 months, though output prices accelerated. Despite these developments, business confidence remained restrained, with overall sentiment hovering close to the lows observed after the pandemic.