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Japan's September manufacturing PMI falls to 54.1, AI and semiconductor demand boost outlook
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Japan's manufacturing activity expanded at a slower pace in September compared to August, according to a flash PMI reading from S&P Global. The headline PMI fell to 54.1 from 54.9 in August, with output growth hitting a three-month low and new orders growth at a four-month low, though both remained in expansion for the ninth consecutive month. New export orders continued to show strength, supported by resilient overseas demand. Business confidence rose to its highest level since February 2024, driven by demand growth in AI, semiconductors, defense, and automotive sectors. Manufacturing employment also increased, pushing private sector job growth to a seven-month high. The survey indicated a slight easing of cost pressures for Japanese firms, but challenges persist from a weak yen, rising energy and raw material prices due to Middle East tensions, and higher labor and transportation costs.
Source report
Japan's manufacturing sector expanded at a slower pace in September compared to August, with both output and new orders growth declining, though overseas demand continued to provide support for businesses.
According to S&P Global data, the flash Japan Manufacturing PMI fell to 54.1 in September, down from 54.9 in August.
Key highlights:
- Output growth slowed to its lowest in nearly three months
- New orders growth eased to a four-month low
- Both output and new orders remained in expansion territory for the ninth consecutive month
- New export orders continued to perform strongly, with overseas demand showing resilience
- Business confidence rose to its highest level since February this year, driven by demand growth in AI, semiconductors, defense, and automotive sectors
- Manufacturing employment continued to increase, pushing private sector job growth to a seven-month high
Cost pressures:
The survey indicated a slight easing in cost pressures for Japanese companies. However, businesses continue to face headwinds from:
- A weak yen
- Rising energy and raw material prices driven by Middle East tensions
- Increasing labor and transportation costs
Source
金十数据Neutral / independent
Part of this Story
Japan's September Manufacturing PMI Slips to 54.1, Expansion Slows but Continues