FX.co ★ Japan Manufacturing PMI Revised Downward

The au Jibun Bank Japan Manufacturing PMI was adjusted downward to 50.1 in June 2025, a slight decline from the initial estimate of 50.4, yet an improvement over May's 49.4. This figure represents the first growth in the sector since May 2024, and it is the highest recorded since then, driven by a resurgence in output. Employment levels also increased, while work backlogs saw a significant reduction. Nevertheless, demand conditions were tepid, with new orders and foreign sales both experiencing declines in June due to newly implemented U.S. tariffs. Purchasing activity saw a decline, albeit at the slowest rate in a nine-month contraction trend, and supplier delivery times extended marginally. Regarding pricing, input cost inflation saw a slight uptick following a drop to a 14-month low in May, largely due to rising costs for raw materials, labor, energy, and transportation. Consequently, output price inflation rose to its highest point in three months. Lastly, there was an improvement in business sentiment, reaching a five-month high.