In August, Japan's composite PMI rose to 53.0, highest since May 2023, while factory activity declined less.

In August, Japan's factory activity slowed its decline, with the au Jibun Bank flash Japan manufacturing PMI rising from 49.1 to 49.5, still below the 50.0 growth threshold. Despite the contraction, the service sector expanded, showing positive conditions in certain industries. The composite PMI, which combines both manufacturing and service sector activity, reached 53.0 in August, its highest level since May 2023. Rising price pressures and labor constraints remain a concern, particularly in the service sector.