Japan’s manufacturing downturn extends to ninth month; services activity turns negative

The Au Jibun Bank Japan Manufacturing PMI declined to 48.3 in March 2025 from 49.0 in the previous month, below market forecasts of 49.2, marking the ninth consecutive month of contraction, preliminary estimates showed, while services activity also turned negative. The Au Jibun Bank of Japan Services PMI dropped to 49.5 in March 2025, down from 53.7 in February, which had marked a six-month-high, a preliminary reading showed. The au Jibun Bank of Japan Composite PMI fell to 48.5 in March 2025, down from 52.0 in February, according to flash data. The Nikkei 225 Index edged up 0.2% to above 37,700, while the Topix Index slipped 0.3% to 2,795 in mixed trading on Monday. The Japanese yen slipped toward 150 per dollar on Monday, extending losses from the previous session, as disappointing business activity data countered a hawkish Bank of Japan outlook. More on Japan Japan’s core inflation rate slows to 3% in February, exceeds forecast; food prices slow slightly Japan’s trade balance swung to surplus in February, driven by strong exports Bank of Japan keeps interest rates unchanged at 0.5%, as widely expected Japan Q4 GDP growth revised slightly lower; annualized basis economy expands by 2.2% Japan producer prices rise 4% Y/Y in February 2025, as expected