Japan final February Manufacturing PMI 49.0 (prior 47.7)

Jibun final manufacturing PMI for February 2025 from Japan:

49.0, still below the 50 level and still in contraction

• prior 48.7
• preliminary was 48.9

While the pace of contraction eased slightly, Japan’s factory sector continues to face headwinds from weak global demand and trade policy uncertainties.

More:

• The report pointed to sluggish demand both domestically and internationally, with firms citing weaker confidence across key markets such as the United States, Europe, and China. Output declined for the sixth straight month, though at a slower pace than in January, while new orders remained subdued, extending their downturn since mid-2023.
• Despite ongoing challenges, Japanese manufacturers maintained a positive business outlook for the year ahead. However, confidence weakened significantly, reaching its lowest level since June 2020. The survey also noted that concerns over U.S. protectionist trade policies, particularly tariff threats, were weighing on sentiment, adding further uncertainty to the global trade environment.
• Employment levels stagnated, as hiring to fill full-time positions was largely offset by retirements and voluntary departures. Meanwhile, rising input costs—driven by higher raw material, labor, and utility expenses—pushed manufacturers to raise their selling prices at an accelerated rate.

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