The S&P Global Japan Manufacturing PMI was revised slightly lower to 48.2 in October 2025, from a preliminary estimate of 48.3 and down from 48.5 in September. The latest reading marked the steepest decline since March 2024, reflecting the sharpest drop in factory orders in 20 months amid constrained client budgets, weak demand conditions, and adverse export trends. Foreign sales declined, though at the softest pace since March. Output also fell amid subdued demand, a lack of new orders, and notable weakness in sectors such as automotive and semiconductors. Persistent reductions in customer demand prompted firms to scale back input purchases, while employment rose marginally. On prices, input cost inflation accelerated to a four-month high, driven by higher labor, material, and transportation costs, while output price inflation was little changed. Finally, sentiment improved from September’s five-month low amid hopes of a recovery in demand and a diminishing impact from new US tariffs.