Japan manufacturing PMI drops to 49.0, fourth month of decline

The au Jibun Bank Japan Manufacturing PMI fell to 49.0 in October 2024, down from a final reading of 49.7 in the previous month and below market expectations of 49.9.

Japan manufacturing PMI drops to 49.0, fourth month of decline

According to preliminary estimates, this marks the fourth consecutive month of contraction in factory activity. Additionally, it signifies the eighth straight month of decline in the manufacturing sector this year and the sharpest contraction since March, with output and new orders decreasing the most in six and seven months, respectively, alongside a more rapid decline in export orders.

Employment falls as business sentiment hits 2.5-year low

Employment fell for the first time since February, while backlogs of work decreased quickly, and purchasing activity declined for the first time in three months. Supplier delivery times lengthened, although they eased from the previous month. On the price front, input price inflation moderated while output price inflation increased. Finally, business sentiment dropped to a 2.5-year low.