Japan PMI Manufacturing dropped to 48.5 in October, down from 48.9 and missed expectation of 49.2. That’s the sixth successive sub-50 reading, and lowest since June 2016. PMI Services dropped to 50.3, down from 52.8. PMI Composite dropped to 49.8, down from 51.5.
Joe Hayes, Economist at IHS Markit said: “Japan’s economy hit a widely-expected bump in October following the consumption tax increase which took effect during the month. However, the impact has been somewhat obscured by the typhoon, which panelists, particularly in the service sector, were disrupted by…. Overall it seems that temporary domestic factors have been the primary cause of reduced output at the start of the fourth quarter, suggesting there is potential for some pay-back in November.”
