The S&P Global Japan Composite PMI registered 51.3 in September 2025, above the flash estimate of 51.1 but down from 52.1 in the previous month, marking the lowest level since May. Despite this slowdown, it signaled the sixth consecutive month of private sector growth. Sector data showed that a steeper contraction in factory output partly offset solid services activity. New business rose only marginally, while foreign demand declined for the sixth consecutive month at a solid pace. On the labor front, a fresh rise in service sector payrolls lifted overall job creation to a three-month high, though backlogs increased only slightly. Meanwhile, price indicators pointed to a softer yet still sharp rise in input costs and a solid increase in output charges.