Japan September Manufacturing PMI Eases to 54.1, Six-Month Low as Output and Orders Slow

Japan's manufacturing sector expanded at its weakest pace in six months in September, as output and new order growth slowed, S&P Global's survey showed on Thursday. The S&P Global Japan Manufacturing Purchasing Managers' Index eased to 54.1 in September from 54.9 in August, matching a flash reading and marking a ninth consecutive month above the 50.0 expansion threshold. Production growth slowed to a three-month low, while total new orders expanded at the weakest rate in four months after August's multi-year record. Annabel Fiddes, economics associate director at S&P Global Market Intelligence, said clients were adjusting inventories as earlier stock accumulation unwound. Export orders rose for a ninth straight month, supported by stronger Asian demand and improved US sales. Employment grew for a 22nd consecutive month. Input cost inflation slowed to a six-month low, though selling prices continued rising near the sharpest rates since late 2022. Firms cited semiconductor and AI-related demand, flagging supply disruption, component shortages and rising costs as risks.