Japan manufacturing growth eases to six-month low at 54.1 in September

  • Japan's manufacturing sector expanded for a ninth consecutive month in September.
  • 54.1 was Japan's September PMI reading, down from 54.9 in August.
  • New export orders increased for a ninth straight month on stronger regional demand.

Japan's manufacturing sector expanded for a ninth consecutive month in September, although the S&P Global Japan Manufacturing PMI fell to 54.1 from 54.9 in August, its weakest expansion in six months. Output growth slowed to a three-month low and new-order growth eased from August's multi-year high as some customers adjusted inventories after earlier stock accumulation. Export orders remained strong, supported by demand from Asian economies and the United States, while factories continued hiring to expand capacity. Input-cost inflation eased to a six-month low, but higher staff, raw-material, energy and transport costs continued to drive sharp increases in selling prices. Supplier shortages, particularly involving electronic components and AI-related technology, also lengthened delivery times.

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