S&P Global PMI: Japan’s manufacturing slump deepens in Oct.

Japan’s manufacturing sector continued its downward trajectory in October 2024, with the au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) falling to 49.2 from 49.7 in September.

This decline indicates a sharper deterioration in the health of the sector, driven by renewed weakness in investment goods, a softer fall in intermediate goods, and broadly stagnant conditions in consumer goods.

Factory output fell for the second consecutive month in October, albeit marginally. The reduction was the most pronounced since April, driven by weaker new orders and excess inventory levels.

New orders declined for the seventeenth consecutive month, with demand retrenchment cited as a key factor, particularly in the automotive and semiconductor sectors, according to S&P Global report.

International demand remained subdued, as manufacturers noted the sharpest fall in new export business since March, attributed to weak demand from the US and mainland China.

Attribution: S&P Global report

Subediting: M. S. Salama