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:
- BOJ Gov Ueda spoke over the weekend - said "still a distance to go" to exit loose policy
- Why JDM cars, and perhaps even the yen, look about to get cheaper
- Bank of Japan Q3 Tankan report - Firms expect the CPI still above 2% target in 5 years
- BOJ September meeting summary - Yen, oil price moves may stop inflation from falling much
