Japan's Manufacturing Sector Faces a Slow Start in 2025

According to a recent report by S&P Global, Japan's manufacturing sector experienced a downturn in January. The Jibun Bank Manufacturing Purchasing Managers' Index (PMI) dropped to 48.7, indicating a contraction in activity as it remained below the neutral 50 mark. This figure also represents a decrease from December's 49.6, highlighting a continued decline in the sector's performance.

Usamah Bhatti from S&P Global Market Intelligence commented on the findings, stating, "The initial PMI results for Japan's manufacturing sector in 2025 show a continuation of subdued trends. Both output and new orders have fallen further into contraction territory. Additionally, the rate of job creation has slowed, and outstanding business has seen a sharp decline."