Japan composite PMI drops to lowest level since 2022

The au Jibun Bank Flash Japan Composite PMI dropped to 49.4 in October 2024, down from 52.0 in September, marking its lowest since November 2022.

Japan composite PMI drops to lowest level since 2022

This decline signals the first contraction in private sector activity since June, as the manufacturing sector worsened and the services sector contracted for the first time in four months. New orders saw their sharpest drop in 2.5 years, following three months of growth, while foreign demand declined at the fastest pace since February 2023. Employment growth also slowed, alongside a steeper drop in backlogs of work.

Input inflation accelerates as business sentiment hits lowest since August 2020

Input price inflation accelerated, and selling prices continued to rise for the second consecutive month, with inflation staying well above average. Business sentiment has weakened to its lowest level since August 2020, and it has been impacted by ongoing economic challenges and persistently high prices.