Japan Jibun Bank PMIs
- First reading below 50 since 2016
- Prior was 52.8
- Composite 49.1 vs 49.8 prelim
- Prior composite PMI 51.1
The sharp drop in this index is a result of the devastating Typhoon Hagibis at the start of October. However with the consumption tax hike, there is a risk of continue weakness.
“It seems that the services sector may struggle to offset manufacturing weakness,” said Joe Hayes, economist at IHS Markit — the firm that conducts the survey. “Short-term pricing and demand adjustments to the taxation change will likely dampen activity in the closing months of 2019.”