FX.co ★ Japan Composite PMI Revised Slightly Higher

The S&P Global Japan Composite PMI reached 52.0 in August 2025, surpassing the preliminary estimate of 51.9 and increasing from 51.6 in July. This marks the fifth consecutive month of private sector expansion, achieving the most vigorous growth since February. The surge was primarily driven by strong performance in the services sector, which counterbalanced a slight decline in manufacturing output. New business orders grew at their fastest pace in six months, though the growth was modest overall. However, a widespread reduction in external demand resulted in a sharp decrease in new export orders. Employment saw a slight uptick. Regarding pricing, input costs rose significantly, yet overall inflation decelerated to its second-lowest point in 18 months. In tandem, output price inflation continued to decrease, hitting an 11-month low.