FX.co ★ Japan Manufacturing PMI Revised Upward

In December 2025, the S&P Global Japan Manufacturing PMI was adjusted upwards to 50.0. This represents an improvement from both the initial estimate of 49.7 and the final figure of 48.7 recorded in November, signaling a stabilization in business conditions after five consecutive months of decline. The current index also reached its peak since June, driven by generally stable production levels and a softer decline in new orders not seen since May 2024. While export orders decreased, they did so at a more moderate and slower rate. Employment experienced a slight uptick, marking the most significant rise in four months, fueled by optimistic projections of increased customer demand in the future. Although purchasing activity fell, it did so at the slowest rate in half a year, with a modest decline in vendor performance attributed to material shortages. In terms of pricing, input cost inflation surged to an eight-month high due to rising raw material and labor expenses, consequently leading to a solid rise in selling prices. Despite a dip in business sentiment, it still remained above the survey's historical average.