The manufacturing sector in Japan continued to contract in October, and at a faster pace, the latest survey from Jibun Bank revealed on Tuesday with a manufacturing PMI score of 48.2.
That missed expectations for 48.3 and was down from 48.5 in September. It also moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.
New orders, the largest sub-component of the PMI, posted its fastest fall in 20 months. According to survey participants, a number of factors weighed on sales, such as constrained client budgets, difficult demand conditions and adverse export trends.
On international sales, Japanese manufacturers particularly noted lower demand from Asia, Europe and the US. Overall, new export orders declined for the forty-fourth month in a row, albeit to a moderate degree that was the softest since March.