The S&P Global Japan Manufacturing PMI was revised higher to 50.0 in December 2025 from a preliminary estimate of 49.7 and a final reading of 48.7 in November, indicating stable business conditions and ending five months of deterioration. The latest reading also marked its highest level since June, as output was broadly stable while new orders fell at the softest rate since May 2024. New export orders shrank at a slightly slower and modest pace. Employment rose marginally, the strongest increase in four months, supported by expectations of stronger customer demand in the months ahead. Purchasing activity declined at the slowest pace in six months, while vendor performance deteriorated modestly, amid reports of material shortages. On prices, input cost inflation accelerated to an eight-month high due to higher raw material and labour costs. As a result, selling prices rose solidly. Lastly, business sentiment weakened but remained above the survey’s long-run average.