Japan Manufacturing Growth Slows to Seven-Month Low in October
Japan's manufacturing sector expanded at its slowest pace in seven months during October, while the services sector showed modest improvement.
S&P Global Market Intelligence reported that Japan's manufacturing sector expanded at its slowest pace in seven months in October. The flash S&P Global Japan Manufacturing Purchasing Managers' Index fell to 53.3 from 54.1 in September, reflecting the weakest growth in new orders and output since March. New export business also grew at the softest rate seen in four months.
While factory employment rose moderately, job creation slowed to a 14-month low and business confidence dropped to its lowest level since July. Purchasing activity led to the largest stock accumulation in nearly four years, though input cost inflation accelerated due to rising raw material and labor costs.
Conversely, the services sector improved, with the S&P Global Japan Services PMI Business Activity Index rising to 52.0 from 51.3. The S&P Global Flash Japan Composite PMI Output Index remained steady at 52.3, marking 19 consecutive months of overall private sector expansion. Output charge inflation eased to a four-month low during this period.
