FX.co ★ Japan Composite PMI Slips to 6-Month Low

The S&P Global Japan Composite PMI decreased to 51.1 in September 2025, down from a final 52.0 in the previous month, according to preliminary data. This marks the lowest level since May, despite being the sixth consecutive month of growth in the private sector. The performance across sectors varied, with a robust increase in services activity clashing with a more pronounced decrease in manufacturing output. Overall, new work saw only slight growth, while new export orders continued their six-month decline. Employment growth reached its slowest rate in two years, concurrent with slower growth in pending business. Input prices experienced a significant rise due to increased costs in labor, raw materials, and fuel, although the rate of inflation moderated since August and was still below the 2025 average. Conversely, output price inflation saw a slight uptick as both manufacturers and service providers increased their charges. However, positive business sentiment stayed muted, falling below the historical average and ranking among the lowest levels observed since the onset of the COVID-19 pandemic.