Japan’s Manufacturing Purchasing Managers’ Index (PMI) fell to 49.2 points in October from 49.7 points in September. However, the index remained below the 50.0 threshold, which separates growth from contraction, for the fourth consecutive month. The decline in domestic and global demand, particularly in the semiconductor and automotive sectors, has led to a slowdown in sales and production.
Due to weak new orders and excess inventory, the sub-index for production continued to decline, reaching its lowest level since April. Additionally, the new orders index dropped further, staying below the 50.0 level for the seventeenth consecutive month, indicating further declines in sales. Companies believe that weak domestic and international demand is the main reason behind the deterioration in new orders.
By the close of trading on Thursday, gold fell by 1.8% to $2,738.30, marking its biggest daily drop since July 25, although it remains the sixth-highest closing price of the year. The main reason behind this decline was strong U.S. economic data, including initial jobless claims, which eased expectations for interest rate cuts by the Federal Reserve.
Gold prices rose by 4.15% in October, marking the fourth consecutive monthly increase. At present, gold is influenced by various factors, making it difficult to determine whether this significant decline is a short-term dip within an upward trend or something else. Many elements could affect the future direction of gold prices.
Canada’s gross domestic product (GDP) remained unchanged in August compared to the previous month, while it is expected to grow by 0.3% in September. This suggests that the Canadian economy may not have met the growth expectations set by the central bank for the third quarter. The 1.2% contraction in the manufacturing sector in August was the biggest drag on the economy, due to restructuring and maintenance activities in several auto plants.
The Bank of Canada’s preliminary estimates indicate that GDP grew by 0.3% in September, driven by gains in the finance, insurance, and retail sectors. When monthly GDP data is converted to an annual growth rate, the third quarter shows a 1.0% growth, whereas the central bank had projected a slowdown to 1.5% from July to September before rebounding in the fourth quarter.
In addition to manufacturing, the transportation and storage sectors also impacted the economy in August. Railway transportation declined due to strikes at Canada’s two largest railway companies, which was a key factor in the transport sector’s downturn. Overall, Canada’s goods-producing sector contracted by 0.4%, while the services sector grew by 0.1%.
