Japan flash PMI: growth slows to four-month low as price pressures stay intense

Sticky price pressures and the strongest hiring since February keep the inflation side of the Bank of Japan's case intact, even as activity growth slows. The survey's explicit link between cost pressures and the weak yen may add to policymakers' sensitivity to further currency weakness. For JGBs, already under pressure from the global rise in yields, the data offers little relief, since selling prices sit close to record levels. Equity investors may focus on the export and AI-related demand strength, which supports manufacturers and chip-linked names, over the softer domestic picture. --- Earlier: Explainer: why Japan may trim bond supply as scarcity in the JGB market eases --- Japan's economy is expanding at a slower pace, yet firms are raising prices almost as fast as ever and hiring harder, a combination that keeps inflation front of mind. Summary: The flash composite output index eased to 52.5 from 53.5, a four-month low but the 18th straight month of expansion The manufacturing PMI slipped to 54.1 from 54.9, output growth hit a three-month low, and the services index fell to 51.6 from 52.5 New order growth slowed on softer domestic demand, while export order growth held at August's eight-and-a-half-year high, driven by manufacturing Input cost inflation eased to a four-month low but stayed historically sharp; output price inflation was just below August's record Employment rose at the fastest pace since February, backlogs grew at a seven-month high pace, and confidence reached its highest since February Final manufacturing data are due October 1, with services and composite on October 5 The flash composite output index fell to 52.5 from 53.5 in August. The reading marks an 18th consecutive month of expansion, but the pace was the slowest since May. Manufacturing continued to lead, with the headline manufacturing PMI easing to 54.1 from 54.9 and factory output growth slipping to a three-month low, as the manufacturing output index fell to 54.9 from 56.1. Service