Japan PMI Manufacturing was finalized at 48.4 in October, down from 48.9 in September. That’s also the lowest level in nearly three-and-a-half year. Markit noted that manufacturers were under pressure amid weaker demand. Production fell for the tenth month in a row. Also, firms reduced output charges in bid to stimulate sales.
Commenting on the latest survey results, Joe Hayes, Economist at IHS Markit, said:
“Worrying signs for Japanese manufacturers appeared at the start of the fourth quarter, with PMI data showing conditions deteriorating at the sharpest rate for almost three-and-a-half years.
“Even more concerning was the fact that new orders, a key forward-looking component of the survey, was the primary reason underpinning this marked decline.
“Japanese goods producers reported the sharpest fall in demand since May 2016, with sector data showing the accelerated drop was broad-based across consumer, intermediate and investment goods.
“Although the impact of the typhoon will have temporarily interrupted factory operations in October, panellists reported unfavourable underlying conditions across both domestic and external markets. As such, downside risks to Japan’s manufacturing economy are clearly excessive. With weak regional growth across Asia and signs of fragility within the domestic economy, it is difficult to see any respite coming in the near-term.”
Also from Japan, unemployment rate rose to 2.4% in September, up from 2.2%, higher than expectation of 2.2%.
