Japan's private sector contracted in October for the first time since late 2022 due to a sharp fall in manufacturing output, flash survey results from S&P Global showed on Tuesday.
The au Jibun Bank composite output index fell to 49.9 in October from 52.1 in the previous month. The score dropped below the neutral 50.0 mark for the first time since December 2022.
The services Purchasing Managers' Index slipped to 51.1 from 53.8 a month ago. The score suggested that activity grew at the weakest pace in the year-to-date period amid worsening economic conditions.
The flash manufacturing PMI held steady at 48.5 in October, signaling the fifth consecutive contraction in the sector. At the same time, the manufacturing output index registered 47.6 in October, down from 48.7 in the prior month.
At the composite level, firms were least upbeat since January. New orders and new export business also pointed to contractions from September.
However, there was a renewed rise in employment driven by services activity. Further, the survey showed that firms faced reduced cost pressures, which led to overall output prices rising at the slowest pace since February 2022.
