Economic Buzz: Japan Manufacturing PMI Falls To 50.8 In September

3 Oct 2022 , 11:16 AM

The Japanese manufacturing sector came under further pressures in September as downturns in output and new orders accelerated. Demand for Japanese goods fell at the quickest pace in two years as high inflation and weakening economic conditions at key trading partners curbed client spending. Manufacturers subsequently reduced their purchases of inputs in response, although high international market prices, partly due to weakness in the yen, caused some companies to step up cost-cutting efforts. Indeed, both input price and output charge inflation quickened over the month. The headline au Jibun Bank Japan Manufacturing Purchasing Managers Index? (PMI) – a composite single-figure indicator of manufacturing performance – fell to 50.8 in September, from 51.5 in August. Overall, this signaled a further slowdown in the sector, with the headline index at its lowest level since January 2021. A significant drag on the sector came on the demand side in September as new orders fell at the sharpest pace in two years. Powered by Commodity Insights