PMI for Japan's manufacturing sector falls to 53.3 in October and reaches the lowest level in seven months
The indicator remains above the 50-point mark, but loses 0.8 points in the monthly comparison, according to InfoMoney.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 2 MIN
Japanese industry lost a little steam in October. According to InfoMoney, the PMI for Japan's manufacturing sector was 53.3 points, compared to 54.1 in September. The drop of 0.8 points in the monthly comparison took the indicator to its lowest level in seven months.
The PMI is an index calculated based on a survey of purchasing managers at companies in the sector. Readings above 50 points indicate expansion in activity, while values below that signal retraction. The survey is carried out by S&P Global in partnership with Jibun Bank.
Despite the decline, the number remains above the 50-point line. The indicator's long-term average is 50.6, and October's reading is still above that benchmark.
The movement suggests that Japanese manufacturing continues to expand, although at a less intense pace in the month. For those who follow the economy, the difference between a gradual slowdown and a sign of deterioration only becomes clear with the sequence of readings in the following months.
In a scenario of uncertainty, private research indicators like this gain weight, because they capture the perception of those who decide purchases and production in factories.
What changes for the investor
The data works as a thermometer for Japanese industry and can influence the reading of exporting companies and production chains linked to the sector. Still, an isolated reading does not allow us to predict the behavior of asset prices. It is worth monitoring the next releases of the indicator to see if the drop repeats itself.
Automatically translated from Portuguese.
