S&P GLOBAL MARKET INTELLIGENCE’s Annabel Fiddes said Japan’s private sector
expanded in September but growth cooled. The preliminary composite PMI output
index signaled the 18th straight month of expansion, yet at its slowest pace
since May. Inflationary pressure remains elevated, driven by a weaker yen and
cost increases linked to the Middle East conflict. Firms raised capacity amid
sustained sales, lifting employment at the fastest pace in seven months.
Business confidence improved, supported by surging AI-related demand and
expected sales gains in defense and autos, though high prices and relatively
soft domestic demand presents downside risks to corporate earnings.
