Japan’s manufacturing expansion weakened to its slowest pace in seven months in October, while stronger services activity kept broader private-sector growth unchanged from September, S&P Global’s flash survey showed.
The manufacturing PMI came in at 53.3, down from 54.1 in September. A reading above 50 signals expansion, so the latest figure showed factories continued to grow even as momentum cooled.
Services business activity improved, with its index rising to 52.0 from 51.3. The composite output index covers activity across services and manufacturing. It held at 52.3, extending private-sector expansion to a 19th consecutive month. Service gains helped offset the factory slowdown in the combined measure.
Factories still recorded growth, but output and goods producers’ new orders increased at their slowest rates since March. Across the private sector, new-business growth had its weakest rise in three months. Export-business growth also eased, reaching a four-month low, while job creation slowed to a 14-month low.
Manufacturers increased purchasing, and input inventories recorded their largest rise in nearly four years. Factory employment continued to grow at a moderate rate, even as hiring across private businesses lost momentum.
Survey respondents cited higher raw-material and labor expenses as input-cost inflation edged up. Firms continued to raise selling prices, but the pace of those increases eased to its slowest in four months. Confidence in the year-ahead outlook also fell to its lowest level since July, the survey showed.
