The S&P Global Japan Composite PMI fell to 51.1 in September 2025 from a final 52.0 in the previous month, flash data showed. It was the lowest reading since May despite marking the sixth straight month of growth in private sector activity. Sector trends diverged, with a strong rise in services contrasting a sharper decline in manufacturing production. Total new work grew only marginally, while new export orders fell for the sixth month running. At the same time, employment expanded at its slowest pace in two years amid the slower accumulation of outstanding business. On the cost front, input prices rose sharply due to higher labor, raw material, and fuel costs, though the rate of inflation eased from August and remained below the 2025 average. Meanwhile, output price inflation accelerated slightly, with both manufacturers and service providers raising charges. Positive sentiment remained subdued, below the historical average and among the lowest recorded since the COVID pandemic.