The S&P Global Japan Manufacturing PMI declined to 48.4 in September 2025 from a final reading of 49.7 in August, falling short of market forecasts of 50.2, according to preliminary estimates. The latest figure marked the 14th contraction in factory activity over the past 15 months and the steepest decline since March, driven by the fastest drop in new orders since April, while output fell at the sharpest rate in six months. The decline in new orders was attributed by some firms to cautious inventory policies among clients amid challenging market conditions. Notably, foreign sales continued to fall. On the price front, input costs rose due to higher labour, raw material, and fuel prices. As a result, output prices also continued to rise. Looking ahead, business sentiment weakened.