The S&P Global Japan Manufacturing PMI fell to 54.1 in September from 54.9 in August, remaining above the 50 threshold that indicates expansion. Output rose at its slowest pace in three months and new orders at their weakest in four months, although both expanded for a ninth consecutive month. Strong export demand, rising manufacturing employment and increased confidence supported activity, with firms citing sustained demand in AI-related sectors, semiconductors, defence and automobiles. Services activity also slowed, taking the composite PMI to 52.5, its weakest expansion since May. Cost pressures eased slightly but remained historically elevated, while high prices and sluggish domestic demand weighed on the outlook.