Japan's Private Sector Activity in July

Japan's private sector activity experienced modest growth in July, with the composite PMI holding steady at 51.5, as reported by S&P Global. This stability highlights a mixed performance across different sectors.

Sector Performance

The services sector led the expansion, with its Business Activity Index climbing to 53.5 from 51.7. In contrast, the manufacturing sector faced contraction, with the PMI dropping to 48.8 from 50.1, and factory output seeing a significant decline to 47.6 from 51.2.

Expert Insight

Annabel Fiddes of S&P Global noted, "Business activity continued to expand," but also pointed out that "tariff uncertainty and weak optimism led firms to slow hiring and remain cautious."