The au Jibun Bank Japan Manufacturing PMI increased to 50.4 in June 2025 from May’s 49.4, marking the first expansion in the sector since May 2024, according to preliminary estimates. The upturn was supported by renewed increases in output and stocks of purchases, as well as a slightly faster rise in employment. Meanwhile, backlogs of work declined at a softer rate. However, demand conditions remained muted, with both overall new business and foreign sales falling again in June, amid newly imposed US tariffs. Purchasing activity declined at a weaker pace, while supplier delivery times lengthened more sharply. On the price front, input cost inflation held close to May's 14-month low but remained elevated, while output price inflation was among the softest seen in the past four years. Finally, business sentiment was little changed and remained weaker than the historical average.