Japan Flash PMI Signals Resilience Despite Cost Pressure

Dow Jones
5 hours ago

0157 GMT - Japan's private-sector growth slipped a gear in September, but business confidence and employment continue to look encouraging, says Annabel Fiddes at S&P Global Market Intelligence. The flash PMI composite output index showed the softest rate of expansion since May, but an 18th successive month of growth. Inflationary pressures remain high amid cost increases linked to a weak yen and the Middle East conflict. Still, staffing levels rose to the greatest extent in seven months as firms look to build capacity on the back of sustained increases in sales, Fiddes says. Confidence strengthened, too, with upbeat forecasts widely linked to the boom in AI-related demand. Firms also anticipate greater sales in areas like defense and automobiles. That said, concerns remain that high prices and relatively sluggish domestic demand could damp performance.

 

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