This is Japan's Jibun Bank/Markit Manufacturing PMI (final for October):
Comes in at a 40 month low, ugly result indeed at 48.4
- vs. preliminary 48.5, prior 48.9
Yesterday the BOJ opened the door wider to further policy easing. Like it or not its getting more difficult for them sit on their hands. Its a conundrum, some of this is due to the trade wars and there isn't much the BOJ can do about that.
IHS Markit:
- "Worrying signs for Japanese manufacturers appeared at the start of the fourth quarter, with PMI data showing conditions deteriorating at the sharpest rate for almost three-and-a-half years.
- "Even more concerning was the fact that new orders, a key forward-looking component of the survey, was the primary reason underpinning this marked decline.
- "Japanese goods producers reported the sharpest fall in demand since May 2016, with sector data showing the accelerated drop was broad-based across consumer, intermediate and investment goods.
- "Although the impact of the typhoon will have temporarily interrupted factory operations in October, panellists reported unfavourable underlying conditions across both domestic and external markets. As such, downside risks to Japan's manufacturing economy are clearly excessive. With weak regional growth across Asia and signs of fragility within the domestic economy, it is difficult to see any respite coming in the near-term."
