Data released in the Asian session this morning (Tuesday) showed Japan's manufacturing PMI index fell to 48.2 in October.
This showed that Japan's manufacturing sector activity contracted at the sharpest rate in the 19 months to October 2025.
The decline marked the fourth consecutive month that the index has remained below the 50.0 mark, pressured by weak demand in the automotive and semiconductor sectors.
The new orders index fell at the fastest pace in 20 months as consumer spending became more restrained, while export orders fell for the 44th consecutive month, although the rate of decline has eased slightly since March.
While factory output fell less than the previous month, input cost inflation rose to a four-month high on rising labor, raw material and transportation costs.
As a result, the situation forced companies to raise output prices to maintain profit margins.
