Japan’s au Jibun Bank Sept manufacturing PMI falls to 50.8

SINGAPORE (ICIS)–au Jibun Bank’s final manufacturing purchasing managers’ index (PMI) for Japan fell to 50.8 in September from 51.5 in August as downturns in output and new orders accelerated, the Japanese bank said on Monday.

The headline index for September marked its lowest level since January 2021, au Jibun Bank said in a note.

A significant drag on the sector came on the demand side in September as new orders fell at the sharpest pace in two years.

High prices and weak market conditions caused manufacturers’ clients to rein in their spending while weaker demand from international markets was evidenced by a further reduction in new export orders.

“New business from customers in China, South Korea, Europe and the US reportedly dropped. Subsequently, Japanese manufacturers cut their production volumes at the end of the third quarter for the third successive month,” au Jibun Bank said.

Inflationary pressures on Japanese manufacturers accelerated at the end of the third quarter.

The rate of input price inflation edged higher amid multiple sources of cost pressure. Transportation and energy expenses were reported to have risen, while weakness in the yen had increased the cost of imported items.