Manufacturing PMI from Japan for September 2024, the final from S&P Global / Jibun Bank.
Another contraction result.
Preliminary is here:
Japan Jibun preliminary Sep PMIs: Manufacturing 49.6 (prior 49.8) Services 53.9 (53.7)
The key points in the report:
Output levels fall for second time in three months
Slowest rise in employment levels in current seven month sequence
Output charge inflation reaches lowest since June 2021
This is not a great report, but they haven’t been for a while. Japan’s latest Purchasing Managers’ Index (PMI) results indicate a subdued outlook for the manufacturing sector, with both output and new orders slipping into contraction. The data also shows a significant slowdown in job creation, and companies have reported a decline in vendor performance.
In response to these challenges, many manufacturers have ramped up their input purchases, aiming to stockpile materials in anticipation of a future recovery in demand. Some businesses also cited extended delivery times as a motivation for early procurement, seeking to mitigate the risk of further delays.
Despite the current challenges, manufacturers remain optimistic about a rebound in output over the next year, with overall confidence above the long-term average. However, the level of positive sentiment has softened, reaching its lowest point since late 2022, as some firms express growing concerns about the future.
This article was written by Eamonn Sheridan at www.forexlive.com.
