Japan's manufacturing sector shrinks at fastest pace in 6 months
Japan's manufacturing sector shrank at the fastest pace in six months this September, with the PMI dropping to 48.4—meaning fewer new orders and businesses playing it safe with inventory.
Export orders are still down, though not as badly as last month.
The broader outlook for Japan's export-reliant economy remains uncertain due to US tariffs and an expected central bank rate hike.
Services sector holding up well
On the flip side, Japan's services sector is holding up well with a PMI of 53.0, barely changed from August.
Strong demand at home is helping balance out job losses in factories—the first time manufacturing jobs have dropped since late last year.
Overall business growth has slowed to its lowest pace since May, but there's a silver lining: input costs for manufacturers are easing up even if companies are having to bump prices a bit to cover expenses.