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Japan manufacturing growth slows to 7-month low in October, PMI shows

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In short

Japan's manufacturing sector experienced its slowest growth in seven months in October, with the flash S&P Global Japan Manufacturing PMI falling to 53.3, down from 54.1 in September. Key factors included a decline in new orders, reduced export business, and a decrease in output, with the weakest rise in new orders since March and goods producers recording the slowest increase in new orders since March. Despite these challenges, factory employment and purchasing activity showed slight improvements, leading to the largest stock accumulation in almost four years. Service activity also saw an increase, with the flash S&P Global Japan Services PMI Business Activity Index rising to 52.0, indicat…

Key points

  • The flash S&P Global Japan Manufacturing PMI fell to 53.3, down from 54.1 in September, m…: The flash S&P Global Japan Manufacturing PMI fell to 53.3, down from 54.1 in September, marking the slowest growth in seven months.
  • New orders declined for the first time in March, while export business growth slowed to a…: New orders declined for the first time in March, while export business growth slowed to a four-month low.
  • Goods producers recorded the slowest increase in new orders since March, with factory emp…: Goods producers recorded the slowest increase in new orders since March, with factory employment and purchasing activity showing slight improvements.

Sources checked by our analysis pipeline: 1

TOKYO, Oct 23 : Japan's manufacturing sector expanded at its slowest pace in seven months in October as output and new order growth eased, a business survey showed on Friday.

• The flash S&P Global Japan Manufacturing Purchasing Managers' Index (PMI) fell to 53.3 in October from 54.1 in September. A reading above 50.0 indicates expansion in activity, while below that level signals contraction

• New orders of goods producers rose at the weakest pace since March, while new export business across Japan's private sector increased at the softest rate in four months

• Manufacturers logged the weakest rise in output since March, while goods producers recorded the slowest increase in new orders since March, the survey showed

• Factory employment rose at a moderate pace in October. Manufacturers also increased purchasing activity, leading to the largest accumulation in stocks of purchases in almost four years.

• Service activity edged higher in October. The flash S&P Global Japan Services PMI Business Activity Index rose to 52.0 from 51.3, with the survey showing a stronger increase in business activity and faster sales growth

• At the broader economy level, the S&P Global Flash Japan Composite PMI Output Index was unchanged at 52.3, marking a 19th straight month of expansion in private sector activity

• "The October flash PMI data indicated that overall business activity growth across Japan was unchanged from a month prior to remain weaker than the average for the year-to-date," said Usamah Bhatti, economist at S&P Global Market Intelligence

• Across the private sector, new business rose at the slowest pace in three months and export business growth eased to a four-month low. Job creation slowed to a 14-month low, while confidence for the year ahead weakened to its lowest since July

• Input cost inflation accelerated slightly in October, driven by higher raw material and labour costs. Firms continued to raise selling prices, although output charge inflation eased to a four-month low

Original source: www.channelnewsasia.com

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