Japan PMI falls to 46.9, 18-month low

Markit’s press release on Japan’s October manufacturing PMI,

Commenting on the Japanese Manufacturing PMI survey data, Paul Smith, Senior Economist at Markit and author of the report said:
“The fall back in the headline PMI to an 18-month low during October was disappointing in the context of last month’s slight rise. Latest survey data are consistent with manufacturing production contracting at a quarterly rate of just over -3%.

“Sub-par industry performance continues to be closely linked with underlying export weakness. Based on a historical comparison with PMI data, overseas shipments are estimated to have fallen at a quarterly pace of close to -4% in October, as global growth remains sluggish, particularly in key export markets such as China.

“The continuation of the soft patch that has been evident in the second half of the year in 2012 so far has also now spilt over into the labour market. Manufacturers cut jobs for the first time in six months during October – and at the sharpest pace since mid 2009.”

(click here if chart is not observable)