INSUBCONTINENT EXCLUSIVE:
This drop below 50 marks a contraction, unsettling businesses and policymakers.The figures, released on March 24, 2025, reveal a weakening
economy as the first quarter ends
Manufacturing PMI falls to 46.5 from 48.4, showing factories struggle with shrinking orders and output.Services PMI slips to 49.5 from 53.7,
ending months of growth in a key sector
Labor shortages, an aging population, and shaky global trade further dim the outlook
Inflation lingers above 2%, despite softening slightly, eroding consumer spending power.The yen weakens, pushing up import costs and
After lifting rates to 0.5% earlier in 2025, the bank now hesitates
(Photo Internet reproduction)Output prices rise as firms pass costs to buyers, risking weaker sales
suggests GDP growth dips below 1%, down from 2.3% earlier in 2025
Global trade tensions, especially from U.S
policy shifts, threaten exports vital to Japan
Businesses grow pessimistic, with future output expectations at their lowest since 2023
Structural woes like a shrinking workforce add pressure.The Bank of Japan faces a dilemma as it balances inflation and growth
A delay in rate hikes looms likely, with focus shifting to incoming data
Observers note the stakes rise for a nation battling demographic decline and global risks
