Japan Manufacturing PMI Drops to Six-Month Low of 54.1 in September

Japan's manufacturing activity expanded at a slower pace in September, with the headline S&P Global Manufacturing PMI declining to a six-month low of 54.1 from 54.9 in August. The slowdown stemmed from softer output growth and decelerating domestic new orders as clients adjusted stockpiles. Despite the moderation, the reading kept the sector above the 50.0 expansion threshold and capped its strongest quarterly performance since the first quarter of 2014. Strong semiconductor and AI-related export orders from the US and Asian markets, alongside elevated selling price increases, continued to support sector growth and potential Bank of Japan policy tightening.