The S&P Global Japan Composite PMI fell to 50.9 in October 2025 from a final 51.3 in September, flash data showed, marking the lowest level since May and signaling a second straight month of slower growth. Service sector activity expanded at the weakest pace in four months, while manufacturing output shrank slightly faster. New orders declined for the first time in 16 months, though only marginally, and foreign demand fell again, albeit at the slowest rate in four months. Employment continued to rise, extending the current two-year streak of job growth, but the pace of hiring was weaker than the recent average. Backlogs of work fell for the first time since May, pointing to softer capacity pressures. On prices, input costs rose sharply amid higher labor, raw material, and fuel expenses, alongside a weaker yen. As a result, output charges rose at the fastest pace in three months. Finally, business confidence eased to below the series’ long-run average, reflecting growing uncertainty.