Japan Manufacturing PMI January (final) 48.7 (prior 49.6)

Jibun / S&P Global Manufacturing PMI for Japan in January 2025, the final reading

48.7

• preliminary was 48.8
• December was 49.6

The report on the numbers argues that the PMI results for Japan’s manufacturing sector indicate that subdued activity persisted at the start of 2025. Both production and new orders declined further, while job creation slowed and backlogs of work dropped significantly.

Due to weak demand, manufacturers reduced their inventories of finished goods and raw materials. Additionally, lower production needs led to a sharp decline in input purchases, marking the steepest drop in almost a year.

Despite ongoing challenges, businesses remained hopeful about output growth over the next 12 months. However, optimism fell to its lowest level since December 2022, with firms expressing uncertainty about when demand will recover.

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Earlier from Japan:

• BoJ January meeting summary – one member cited upside inflation risk

This article was written by Eamonn Sheridan at www.forexlive.com.