Japanese Manufacturing Sector in Contraction for Sixth Consecutive Month in October

Japan's manufacturing activity continued to contract for the sixth consecutive month, falling to the lowest levels in three years during Oct

Arslan Butt•Friday, November 1, 2019•1 min read

Japan's manufacturing sector continues to contract

Japan’s manufacturing activity continued to contract for the sixth consecutive month, falling to the lowest levels in three years during October. The Jibun Bank Final Japan Manufacturing PMI slid to a seasonally-adjusted 48.4 in October from 48.9 in September.

The last time the manufacturing sector remained in contraction for a six-month stretch was between March and August in 2016. Ongoing trade tensions between the US and China have had a severe spillover effect on Japan’s manufacturing sector as China is one of its most important trading partners.

The contraction became more pronounced as new orders declined at the fastest pace seen since May 2016, for the 10th consecutive month. In addition, factory output and new export orders also continued to contract during October.

The release of this news has failed to make much of an impact on the Japanese yen, with USD/JPY trading somewhat steady around 107.97 at the time of writing.

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Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.