Japan Private Sector Growth Weakest In 4 Months
(RTTNews) - Japan's private sector grew at the slowest pace in four months in September as the strong rise in services activity was partially offset by a steeper fall in manufacturing production, flash survey data published by S&P Global showed on Wednesday.
The flash composite output index fell to 51.1 in September from a six-month high of 52.0 in August.
Nonetheless, the indicator remained above the crucial 50.0 mark that separates growth from contraction.
The overall expansion was driven by a further solid rise in service sector output, while the downturn in manufacturing production gathered pace.
The flash services Purchasing Managers' Index hit 53.0 in September, slightly down from 53.1 in August. Meanwhile, the manufacturing PMI declined to 48.4 from 49.7 in the previous month.
The overall new work received by the private sector grew at a softer pace due to the steeper decrease in manufacturing orders. New export business decreased for the sixth straight month with both manufacturers and service providers noting lower demand from overseas.
Employment increased only slightly in September with the pace of expansion reaching the weakest over the current two-year period of job creation.
On the price front, the survey showed that input cost inflation eased from August due to higher labor, raw material and fuel costs. Output price inflation accelerated as both manufacturers and service providers raised their charges.
Companies remained upbeat that business activity increased from the current levels over the next year. Nonetheless, the overall degree of positive sentiment remained below the historical average.
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