In a report on the economy released today, Monday, it was revealed that growth in the manufacturing sector activity in Japan slowed down in October compared to September.
According to the Japanese Bank of Japan Bank report, the manufacturing sector directors’ score declined this month to 50.7 points, according to preliminary data, from 50.8 points in September of last year, according to updated data.
If the index reads more than 50 points, the sector’s economic activity is growing; if it reads less than 50 points, the activity is contracting.
Although at a slower rate than previous month, the manufacturing sector’s loss in both production and new orders persisted this month. In parallel, costs in many production sectors continued to rise, and at the same time, the rate of price inflation for goods reached a new high.
Despite all of this, businesses have kept growing in the belief that the Corona virus’ effects will eventually fade.
The services sector purchases index increased this month to 53 points from 52. 2 points in September of previous year, according to a poll by Japan’s Japon Bank. During the same time period, the aggregate index of managers in the manufacturing and service sectors increased from 51 to 51. 7 points.
In Japan, the industrial sector’s growth rate slowed in October.
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