Japan's manufacturing conditions weaken for third straight month
Its September factory activity slightly dips to 49.6.
Japan's factory activity slightly fell to 49.6 in September from 49.8 in August, a survey said.
The au Jibun Bank flash Japan Compositae PMI, compiled by S&P Global, indicates that manufacturing business conditions have weakened for the third consecutive month.
The index stayed below the 50.0 threshold separating growth from contraction for the third straight month.
Production levels marginally dropped for the second time in three months, whilst new order inflows fell at a modest albeit slightly softer rate.
Employment also broadly stalled at the end of the third quarter.
Lead times declined in September, with the latest lengthening being the most significant since February.
This encouraged firms to build stocks of purchased items for the first time in three months.
Rates of inflation for input costs and output prices eased in September to reach the lowest levels in six months, according to the survey, whilst the overall degree of confidence in the 12-month outlook for output softened to its least pronounced level since December 2022.
"The expansion in business activity remained services-led in September," said Usamah Bhatti, economist at S&P Global Market Intelligence.
"Both manufacturing and services firms noted softer cost pressures, though average operating expenses remained historically elevated overall."