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 signalled 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

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 signalled 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 defence and autos, though high prices and relatively soft domestic demand present downside risks to corporate earnings.