TOKYO, Oct 31 (Reuters) - Manufacturing activity in Japan fell to a seven-year low in October, the Japan Purchasing Managers Index showed on Friday, a sign of worsening conditions in the manufacturing sector as a global slowdown and the credit crisis push the economy closer to recession.
The Nomura/JMMA Japan Purchasing Managers Index, which gives an early snapshot of the health of manufacturing, sank to seasonally adjusted 42.2 in October from 44.3 in September.
A reading below 50 points to a contraction, while a figure above that suggests an expansion.
Results of the survey were as follows: (Seasonally adjusted) Oct Sept Aug July June --------------------------------------------------------------- PMI 42.2 44.3 46.9 47.0 46.5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Output# 39.7 40.9 43.7 44.2 44.4 New orders 34.5 39.6 44.1 43.2 42.0 New export orders 37.5 45.4 48.0 47.3 45.7 Backlog 37.5 39.1 43.3 43.3 41.0 Finished goods stocks 52.1 52.0 50.1 48.4 50.3 Employment# 46.7 46.9 49.8 50.4 50.6 Output prices 55.0 58.1 55.8 59.6 54.9 Input prices 63.7 68.3 78.4 78.5 75.9 Supplier delivery time# 49.8 48.9 49.4 48.0 48.3 Purchase quantity 41.2 42.9 44.9 46.8 45.9 Stocks of purchases# 50.7 51.1 51.9 51.7 49.3 ---------------------------------------------------------------
# denotes five components of purchasing managers' index.
Data for the survey has been collected since October 2001, based on responses from more than 400 manufacturers. (Reporting by Tetsushi Kajimoto)