TOKYO, Oct 23 (Reuters) - Japan's manufacturing sector expanded at its slowest pace in seven months in October as output and new order growth eased, a business survey showed on Friday.
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The flash S&P Global Japan Manufacturing Purchasing Managers' Index (PMI) fell to 53.3 in October from 54.1 in September. A reading above 50.0 indicates expansion in activity, while below that level signals contraction
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New orders of goods producers rose at the weakest pace since March, while new export business across Japan's private sector increased at the softest rate in four months
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Manufacturers logged the weakest rise in output since March, while goods producers recorded the slowest increase in new orders since March, the survey showed
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Factory employment rose at a moderate pace in October. Manufacturers also increased purchasing activity, leading to the largest accumulation in stocks of purchases in almost four years.
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Service activity edged higher in October. The flash S&P Global Japan Services PMI Business Activity Index rose to 52.0 from 51.3, with the survey showing a stronger increase in business activity and faster sales growth
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At the broader economy level, the S&P Global Flash Japan Composite PMI Output Index was unchanged at 52.3, marking a 19th straight month of expansion in private sector activity
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"The October flash PMI data indicated that overall business activity growth across Japan was unchanged from a month prior to remain weaker than the average for the year-to-date," said Usamah Bhatti, economist at S&P Global Market Intelligence
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Across the private sector, new business rose at the slowest pace in three months and export business growth eased to a four-month low. Job creation slowed to a 14-month low, while confidence for the year ahead weakened to its lowest since July
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Input cost inflation accelerated slightly in October, driven by higher raw material and labour costs. Firms continued to raise selling prices, although output charge inflation eased to a four-month low
Reporting by Satoshi Sugiyama; Editing by Jacqueline Wong
Source: Reuters