Japan PMI Manufacturing was finalized at 48.7 in October, up from September’s 47.7. Output and new orders both fell at softer rates. Export orders also increased for the first time since November 2018. Business optimism reached highest since July 2017.
Usamah Bhatti, Economist at IHS Markit, said: “Japanese manufacturers will be particularly buoyed by the return to growth in export orders, as demand across key overseas markets such as China picked up… The sector reported a weakening employment trend in October, however, as staff numbers fell at a faster pace compared to September… An encouraging finding in October was the sustained improvement in business optimism. Approximately 38% of Japanese manufacturers surveyed foresee an increase in output over the coming 12 months, strengthening the index to its highest reading in over three years.”
