S&P GLOBAL MARKET INTELLIGENCE’s Phil Smith said Japan’s manufacturing sector
entered Q4 maintaining a historically robust expansion despite slower output
growth and new orders. The composite manufacturing PMI fell to a seven-month low
in October at 53.3, above the long-run average of 50.6 and the 50 expansion
threshold; rising backlogs and AI-related demand have kept firms’ confidence
intact. Cost pressures remain elevated, fueling ongoing concern, but increasing
unfinished orders have supported manufacturers’ pricing power.
