The au Jibun Bank Japan Manufacturing PMI was revised lower to 50.1 in June 2025, down from the preliminary estimate of 50.4 but up from May’s 49.4, marking the first expansion in the sector since May 2024. Still, the latest figure was the highest since that time, supported by renewed increases in output. Employment also rose, while backlogs of work declined solidly. However, demand conditions remained subdued, with both overall new orders and foreign sales falling again in June, amid newly imposed US tariffs. Purchasing activity declined, though at the weakest pace in the current nine-month sequence of contraction, while supplier delivery times lengthened slightly. On the price front, input cost inflation accelerated slightly after easing to a 14-month low in May, due to higher costs for raw materials, labor, energy, and transport. As a result, output price inflation accelerated to a three-month high. Lastly, business sentiment improved to a five-month high.