The S&P Global Japan Composite PMI came in at 51.6 in July 2025, slightly above both the flash estimate and June’s reading of 51.5. This marked the fourth consecutive month of private sector expansion, matching the strongest pace of growth since February. The growth was mainly driven by solid expansion in the services sector, while manufacturing output declined after a modest rise in June. Total new orders rose slightly, largely driven by services, as factory sales continued to decline. Overall employment grew at the slowest pace in nearly two years and only marginally. Meanwhile, new export business declined across both sectors. On the price front, input cost inflation eased to its lowest level in over four years but remained elevated, while output price inflation also softened yet stayed broadly firm.