FX.co ★ Japan Composite PMI Revised Narrowly Higher

The S&P Global Japan Composite PMI registered at 51.6 in July 2025, just above both the preliminary estimate and June's figure of 51.5. This reflects the fourth consecutive month of expansion in the private sector, tying the fastest growth rate since February. The upturn was primarily supported by a robust increase in the services sector, although manufacturing output experienced a decline following a slight uptick in June. Overall, total new orders saw a minor rise, primarily fueled by the services sector, whereas factory sales continued their downward trend. Employment across the private sector increased, albeit at the slowest rate in almost two years and only marginally. In terms of exports, new business decreased in both sectors. On the pricing side, input cost inflation reduced to its lowest in over four years, though it remains high, and output price inflation decreased but continued to exhibit general firmness.