Marginal jobs cuts were signalled as a result, whilst firms cut purchasing activity amid concerns over excess inventory at their plants.
On the price front, input costs continued to rise at an elevated pace, while output charges increased at an unchanged, and marked, rate, S&P Global said in a release.
Japan’s manufacturing sector conditions continued to deteriorate in October, with both output and new orders falling again, amid deteriorating sales demand across both home and global markets, a survey found.
Input costs rose at an elevated pace, while output charges rose at an unchanged rate.
Confidence in the future remained above its historical average.
Confidence in the future remained above its historical average, however.
There are hopes amongst panellists that the current downward trend in market demand will soon come to an end.
The headline au Jibun Bank Japan manufacturing purchasing managers’ index (PMI) changed little in October, but remained marooned below the crucial 50 no-change mark for a fifth successive month.
After accounting for seasonal factors, the index recorded 48.7, up from 48.5 and a reading indicative of a modest deterioration in operating conditions.
Output and new orders have now fallen for five months in a row since some marginal growth in May.
China was reported to be a key source of reduced international sales, although Europe and the United States were also mentioned.
Given the challenging market environment, manufacturers understandably chose to cut their purchasing activity and, for the first time since February 2021, employment.
It is hoped that product markets will slowly improve in the coming years and the recent downward trend in demand will soon bottom out.
Fibre2Fashion News Desk (DS)
