TOKYO: Japan's manufacturing sector expanded at its slowest pace in seven months in October as output and new order growth eased, a business survey showed on Friday.
The flash S&P Global Japan Manufacturing Purchasing Managers' Index (PMI) fell to 53.3 in October from 54.1 in September. A reading above 50.0 indicates expansion in activity, while below that level signals contraction
New orders of goods producers rose at the weakest pace since March, while new export business across Japan's private sector increased at the softest rate in four months
Manufacturers logged the weakest rise in output since March, while goods producers recorded the slowest increase in new orders since March, the survey showed
Factory employment rose at a moderate pace in October. Manufacturers also increased purchasing activity, leading to the largest accumulation in stocks of purchases in almost four years.
Service activity edged higher in October. The flash S&P Global Japan Services PMI Business Activity Index rose to 52.0 from 51.3, with the survey showing a stronger increase in business activity and faster sales growth
At the broader economy level, the S&P Global Flash Japan Composite PMI Output Index was unchanged at 52.3, marking a 19th straight month of expansion in private sector activity
"The October flash PMI data indicated that overall business activity growth across Japan was unchanged from a month prior to remain weaker than the average for the year-to-date," said Usamah Bhatti, economist at S&P Global Market Intelligence
Across the private sector, new business rose at the slowest pace in three months and export business growth eased to a four-month low. Job creation slowed to a 14-month low, while confidence for the year ahead weakened to its lowest since July
Input cost inflation accelerated slightly in October, driven by higher raw material and labour costs. Firms continued to raise selling prices, although output charge inflation eased to a four-month low. - Reuters
