21.08.202500:34:56UTC+00Japan Composite PMI Notches 6-Month High

In August 2025, the S&P Global Japan Composite PMI increased to 51.9, up from 51.6 in July, according to preliminary data. This signifies the fifth consecutive month of growth in the private sector and the most rapid expansion since February, driven by a resurgence in manufacturing output and robust advances in the services sector. The rate of new business growth reached its highest level in six months, primarily propelled by the service industry. Employment saw a slight rise, and work backlogs expanded at the most accelerated rate since June 2023, albeit minimally. However, export orders experienced a sharper decline, continuing a five-month streak of contraction. On the cost side, pressures intensified, with businesses facing increased expenses for raw materials, labor, fuel, and transportation. Interestingly, the inflation rate of output prices eased for the second month in a row, reaching its lowest point since October 2024. While business confidence improved, it remained below the survey's historical average.