Japan: October PMI index steady at 52.3, services sector improves

Industrial output less buoyant, with inflation set to be a key issue in the future

(Il Sole 24 Ore Radiocor) - Economic activity in Japan’s private sector remained solid in October. The composite PMI index, compiled by S&P Global based on the views of companies’ purchasing managers, remained at 52.3 points, in line with September. The figure was buoyed by an acceleration in the services sector, which offset a less impressive performance in manufacturing. In particular, the services sub-index rose to 52 points from 51.3 in September, whilst the manufacturing sub-index fell from 54.1 to 53.3, with the production indicator dropping to 53.1 from 54.9.

Growth in new orders slowed in October – according to the analysis – and despite a further increase in the volume of outstanding work, firms expanded their workforces only marginally. Average input prices rose sharply, but selling price inflation fell to a four-month low: concerns over inflation have pushed forecasts for next year to their lowest levels since July.

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