Japan PMI October 2020


Japan: Services and manufacturing PMIs remain in contractionary territory in October

October 23, 2020

The Jibun Bank Composite Purchasing Managers’ Index (PMI)—which combines the PMIs of the services and manufacturing sectors—rose to 46.7 in October according to a flash reading, up from September’s final figure of 46.6. As such, the reading remained below the 50-threshold, and therefore indicated the ninth consecutive month of worsening operating conditions.

The services PMI ticked down to 46.6 in October from 46.9 in September, while the manufacturing PMI inched marginally up to 48.0 in October from September’s 47.7.

Commenting on the results, Bernard Aw, principal economist at IHS Markit, reflected:

“The recovery is slow-going and could remain so in the coming months as a global resurgence of Covid-19 cases could weigh on Japanese economic activity, particularly in the external-facing sectors.”

FocusEconomics Consensus Forecast panelists expect private non-residential investment to decrease 4.2% in 2020, which is down 0.6 percentage points over last month’s projection. In 2021, the panel sees private non-residential investment expanding 3.4%, which is down 0.5 percentage points from the prior month’s estimate.

Author:, Economist

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Japan PMI Chart

Japan PMI October 20 20 0

Note: Jibun Bank Composite, Manufacturing and Services Purchasing Managers’ Index. Readings above 50 indicate an overall increase compared to the previous month, and below 50 an overall decrease.
Source: IHS Markit and Jibun Bank.

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