Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
Gold Prices Hit Record High Above $5,500 as Iran Strike Fears Fuel Safe-Haven Demand 
Oil Prices Climb as U.S. Cold Snap, Dollar Weakness Tighten Supply Outlook 
Starmer’s China Visit Signals New Era in UK–China Economic Relations 
Dollar Slumps to Four-Year Lows as Trump Shrugs Off Weakness, Fueling Confidence Crisis 
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
U.S. and Taiwan Strengthen AI, Semiconductor, and Drone Cooperation at High-Level Economic Talks 
Asian Currencies Slip as Dollar Rebounds Ahead of Fed Rate Decision 
UK Vehicle Production Falls Sharply in 2025 Amid Cyberattack, Tariffs, and Industry Restructuring 
Copper Prices Hit Record Highs as Metals Rally Gains Momentum on Geopolitical Tensions 
Australia Inflation Surprise Fuels Rate Hike Expectations Ahead of RBA Meeting 
Indonesian Stocks Plunge as MSCI Downgrade Risk Sparks Investor Exodus 
Dollar Struggles as Policy Uncertainty Weighs on Markets Despite Official Support 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
China to Boost Brazilian Soybean Imports in Early 2026 Amid Price Advantage 
Thailand Moves to Regulate Gold Trading to Curb Baht Strength and Support Economic Growth 
Japan's factory activity contracted slightly in July as output and new orders fell, according to a business survey. However, the service sector's expansion led to overall growth in the private sector, with the au Jibun Bank composite PMI rising to 52.6.
Japan's Factory Output Dips in July, While Booming Service Sector Spurs Overall Growth
A business survey released on July 23 showed that Japan's factory activity contracted slightly in July as output and new orders fell, and firms remained pressured by higher prices.
However, the survey found that the expansion in the service sector helped overall activity in Japan's private sector return to growth in July.
In July, the au Jibun Bank flash Japan manufacturing purchasing managers' index (PMI) decreased from 50.0 in June to 49.2, according to Reuters.
For the first time in three months, the index declined below the 50.0 threshold that distinguishes growth from contraction every month.
"Service providers led the expansion and saw activity growth hit a three-month high, while manufacturers saw a renewed reduction in output that was only marginal," said Usamah Bhatti, an economist at S&P Global Market Intelligence, who compiled the survey.
According to the survey, the primary output subindex experienced a minor contraction in July, reversing its expansion in June. Additionally, new orders experienced their lowest level since February.
It was discovered that manufacturers were still under pressure as input cost inflation reached its most significant point since April 2023, while output prices declined to a four-month low.
As a result of the yen's decline, the cost of raw material imports increased, accelerating Japan's wholesale inflation last month.
Yen's 38-Year Low Raises Import Costs, but Service Sector Rebounds with Strong July Growth
Earlier this month, the Japanese currency plummeted to a 38-year low about the U.S. dollar. [FRX/] The recent depreciation of the yen can potentially increase the cost of imports.
The previous month's decline in service sector activity was reversed in July, as evidenced by a substantial increase in new business.
The rapid services of au Jibun Bank The PMI increased to 53.9 in July, the most significant level in three months, from 49.4 in June.
The sector's exceptional business reached its most significant level since March, indicating that capacity was under pressure.
In July, the au Jibun Bank flash Japan composite PMI, which amalgamates manufacturing and service sector activity, increased from 49.7 in June to 52.6.
