The S&P Global Japan Manufacturing PMI was revised up to 48.5 in September 2025, from a preliminary estimate of 48.4, but remained below August’s 49.7. The latest reading marked the 14th contraction in factory activity over the past 15 months and the steepest decline since March, amid a sharper drop in overall new orders, driven by weaker demand from China and the impact of US tariffs. Meanwhile, companies raised staffing levels only marginally, marking the weakest increase since February. Reduced customer demand also led firms to cut back on purchasing activity, with the decline being the second-fastest in the past 18 months, while supplier performance continued to deteriorate. On the price front, input cost inflation accelerated to a three-month high, reflecting higher raw material and labour costs. As a result, selling prices rose solidly. Finally, business sentiment weakened to a five-month low, amid growing concerns over US trade policies.