The flash readings for the Jibun Bank / S&P Global PMIs are here:
Commentary from the report on the disappointing result:
- The latest Jibun Bank PMI survey highlights a sustained
downturn in manufacturing sector performance at the end of
the third quarter. The headline reading was the weakest since
February and pointed to a modest downturn in the health of
the sector.
- Depressed economic conditions domestically and globally
weighed heavily on the sector, as both output and new orders
were scaled back further. The decline in the latter was notably
sharp, and the strongest seen for seven months.
- Concerns remained over activity in the coming months as
well, with manufacturers signalling the sharpest depletion in
outstanding business for five months. Normally a bellwether
for near-term activity, the sharper reduction was often
attributed to the absence of new orders, thus firms redirected
capacity to complete backlogs.
- Japanese manufacturers faced additional price pressures
according to the latest data, as the rate of input price inflation
accelerated for the second month running to a four-month
high. There were often reports that higher raw material, oil,
freight and energy prices had placed additional strain on
firms, and that this was compounded by sustained weakness
of the yen which pushed up prices for inputs from abroad.
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Meanwhile USD/JPY is not doing too much at all despite all the info that have been incoming today:
