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2025.08.2100:41:38UTC+00Japan Manufacturing Shrinks Less than Expected

The S&P Global Japan Manufacturing PMI improved marginally to 49.9 in August 2025, up from July's final figure of 48.9, exceeding market predictions of 49, according to preliminary data. This marks the thirteenth instance of contraction in factory activity within the past fourteen months, primarily due to a continued decline in overall sales, including a fifth successive drop in foreign sales. The data suggests that domestic demand is currently propping up growth. The persistent weakness in sales indicates that a sustainable recovery in manufacturing output remains challenging without a near-term uptick in demand. Nonetheless, output showed a slight increase for the second time in three months, driven by enhanced client demand and a rise in new orders.

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