Tokyo:Japan's manufacturing purchasing managers' index (PMI) experienced a decline to a seven-month low in October, as indicated by the latest report from a US-based financial services company, S and P Global. The report highlighted that both output and new orders expanded at their slowest pace since March.

According to Anadolu Agency – English, the PMI for October fell to 53.3 from September's 54.1, although it remained above the long-run average of 50.6. Phil Smith, economics associate director at S and P Global Market Intelligence, noted that the Japanese manufacturing sector has struggled to maintain the growth rates seen earlier this year. Nonetheless, the pace of expansion remains decent by historical standards at the start of the fourth quarter.

Despite challenges, growth in total sales and export orders also hit seven-month lows. This occurred despite the support from global demand for artificial intelligence (AI) and semiconductors. Meanwhile, employment continued to expand rapidly, with job creation being among the fastest observed over the past decade as work backlogs increased.

Moreover, the report pointed out that input cost inflation accelerated for the first time in five months due to rising oil, raw material, and component prices. On a positive note, business confidence rose to an eight-month high, driven by expanding order books.