The au Jibun Bank Japan Composite PMI rose to 51.4 in June 2025 from a final 50.2 in the prior month, flash data showed. It marked the third straight month of growth in private sector activity and the fastest pace since February, amid a renewed expansion in manufacturing - the first since May 2024 - alongside the third straight month of growth in the services sector. While output accelerated and employment grew the most in nearly a year, overall demand conditions remained subdued. Total new business rose only slightly, as weaker foreign demand for manufactured goods weighed on export sales. Firms reported that U.S. tariffs and ongoing uncertainty over the global trade outlook continued to dampen customer demand. Meanwhile, backlogs of work increased after declining in May. On the cost front, input price inflation eased to a 15-month low, even as output prices rose at a faster pace. Finally, business confidence remained cautious, with overall sentiment hovering near post-pandemic lows.