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flag Japan's manufacturing sector contracted in November 2025, but services stayed strong, boosting overall economic expansion amid rising inflation and improved business confidence.

flag Japan's manufacturing sector contracted for the fifth straight month in November 2025, with the flash PMI rising slightly to 48.8, though new orders, especially exports, fell at the fastest pace in three months. flag Factory output hit a four-month high, signaling mild stabilization. flag The services sector remained strong, holding steady at 53.1, driven by domestic demand, helping lift the composite PMI to 52.0, the eighth consecutive month of expansion. flag Inflation pressures grew, with input costs rising at the fastest pace in six months, prompting price hikes, while business confidence reached its highest level since January and employment rose sharply.

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