Japan's Economy Struggles as Factory Activity Contracts and Service Sector Growth Slows

Japan's factory activity remained in contraction for the 5th straight month in October while service sector growth slowed.

Manufacturing PMI was flat at 48.5 in October, below 50 threshold separating contraction from expansion.

Output slipped at fastest rate in 8 months due to drop in new orders; employment contracted for first time since Feb 2021.

Service sector PMI fell to 51.1 in Oct from 53.8 in Sept, marking slowest growth this year.

Composite PMI fell into contractionary territory below 50 for first time since December.