Economic Buzz: Japanese business activity increases at slowest rate in five months amid renewed drop in sales
However, the overall rate of growth slowed for the second month running and was the softest recorded since May. The sustained slowdown coincided with a fresh decrease in total new work placed with Japanese companies during October.
As a result, the rate of payroll growth eased and confidence around the year ahead weakened slightly. Inflationary pressures meanwhile picked up, with both input costs and output charges increasing at faster rates than those seen in September.
The headline seasonally adjusted S&P Global Flash Japan PMI Composite Output Index fell from 51.3 in September to 50.9 in October, to signal a further increase in overall private sector output across Japan. However, the rate of growth was the softest recorded in five months and only marginal.
Underlying data highlighted that the service sector continued to drive the overall upturn in output, as manufacturing production continued to contract. That said, the rate of services activity growth slipped to a four-month low in October, while factory output declined at a slightly faster pace.
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