Economic Buzz: Japans Manufacturing PMI Slips To 50.7 In October

25 Oct 2022 , 10:48 AM

The manufacturing sector in Japan continued to expand in October, albeit at a slower pace, the latest survey from Jibun Bank revealed on Monday with a manufacturing PMI score of 50.7. Thats down from 50.8 in September, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. For the fourth month running both output and new orders declined, albeit at softer paces than in September. Meanwhile, cost pressures across the manufacturing sector remained elevated, while the rate of output price inflation accelerated to a fresh survey peak. Despite this, overall business sentiment ticked higher amid hopes for of a sustained COVID-19 recovery. The survey also showed that the services PMI improved to 53.0 from 52.2, while the composite also rose to 51.7 – up from 51.0 in September. Service providers reported growth in order books which was frequently linked to increasing travel volumes following the roll-out of the Nationwide Travel Discount Program. At the same time, both input cost and output price inflation remained historically sharp, while the 12-month growth outlook weakened to a seven-month low amid concerns around price pressures and general economic conditions.Powered by Commodity Insights