Japan's manufacturing PMI slips to seven-month low in October

In October, Japan's flash manufacturing Purchasing Managers' Index slipped to 53.3, down from 54.1 the month before, marking the slowest expansion in seven months. The decline was driven by the weakest rise in new orders since March and a slowdown in export business to its lowest level in four months. While factory employment grew at a moderate rate, manufacturers increased purchasing, creating the biggest accumulation of inventory in nearly four years.

The services sector showed modest improvement, with its PMI climbing to 52.0, and the overall private-sector composite index remained unchanged at 52.3, extending a 19-month streak of growth. Economist Usamah Bhatti noted that overall business activity stayed flat but remained below the year-to-date average, with confidence for the coming year at its lowest since July. Input-cost inflation edged up due to higher raw material and labour costs, though price-inflation pressures eased slightly.