Economic Buzz: Japan manufacturing PMI rises to 49.7 in August

The manufacturing sector in Japan continued to contract in August, albeit at a slower rate, the latest survey from Jibun Bank revealed on Monday with a manufacturing PMI score of 49.7.

That's up from 48.9 in July, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

Underlying data revealed that a deterioration in business conditions at intermediate goods makers offset improvements at producers of consumer and investment goods. Latest survey data signaled a back-to-back monthly decline in manufacturing production across Japan. That said, the rate of contraction eased to a fractional pace that was slower than the average seen in 2025 to date.

Where lower production was reported, this was generally attributed to lower amounts of new work. Measured overall, new business fell at a modest pace that was unchanged from July. Companies often commented that subdued market conditions had weighed on customer demand.

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