ISTANBUL
Operating conditions in Japan’s manufacturing sector continued to deteriorate in October, S&P Global revealed on Wednesday.
Last month, both output and new orders declined amid weaker demand conditions in both domestic and international markets, the data provider said in a report.
“Marginal jobs cuts were signalled as a result, whilst firms cut purchasing activity amid concerns over excess inventory at their plants,” it noted.
On the price side, input costs continued to increase at an elevated pace, it said, while the rise in output charges was unchanged.
The report added that sentiment in the future remained above its historical average, however; “there are hopes amongst panelists that the current downward trend in market demand will soon come to an end.”
Meanwhile, the purchasing managers’ index (PMI) for the Japanese manufacturing sector was up from 48.5 in September to 48.7 in October.
Usamah Bhatti, an economist in S&P Global, said: “Companies continued to batten down the hatches by cutting purchasing, not replacing leavers and focusing on smart inventory management to minimise any unnecessary plant costs.
“Still, inflationary pressures remained somewhat sticky, with costs again rising quite steeply and charges up to a marked degree.”
Bhatti added that there was still hope that the current market downturn was finding a bottom, while companies are positive for 2024.
