The S&P Global Japan Manufacturing PMI declined to 48.3 in October 2025, from September’s six-month low of 48.5 and below market forecasts of 48.6, preliminary estimates showed. The latest reading marked the 15th contraction in factory activity over the past 16 months and the steepest decline since March 2024, driven by the sharpest drop in factory orders in 20 months amid weaker customer demand and sluggish business conditions. Employment increased marginally. On the price front, selling prices rose due to higher labor, raw material, and fuel costs, compounded by a weaker yen. Looking ahead, business sentiment improved on hopes of a recovery in global economic conditions, new product launches, and stronger demand — particularly for electronic products - to support future output.