By property type, landed home prices climbed 2.9%, up from a 2.5% rise in Q2, while non-landed prices rebounded by 1.0% after a 0.1% decline in the prior quarter.

By region, prices in the Outside Central Region (OCR) increased 2.3%, reversing a 0.1% drop in Q2. In contrast, price growth in the Core Central Region (CCR) slowed to 0.3% from 1.8%. Prices in the Rest of Central Region (RCR) were flat, following a 1.2% fall in the previous quarter.

Meanwhile, private residential rents rose 1.3%, up from a 0.7% increase in Q2, supported mainly by stronger rental growth in the OCR.

The government plans to maintain a high level of housing supply, with 9,320 private residential units on the 2026 Confirmed List—more than 50% above the 10-year annual average.

Sentiment was further pressured by escalating tensions in the Middle East, after reports that the US and Israel have prepared contingency plans for possible renewed strikes against Iran following next month’s midterm elections.

Major technology names led the downturn: Kioxia dropped 7.6%, Advantest lost 4.2%, SoftBank Group declined 7.5%, Tokyo Electron slid 6%, and Fujikura fell 6.8%. Financial and industrial stocks also weakened, while consumer-related shares were comparatively more resilient. For the week, the Nikkei has lost more than 5%.

Employment continued to expand, with job creation increasing at a moderate pace. Purchasing activity also rose, leading to the largest build-up in input inventories in nearly four years. At the same time, suppliers’ delivery times lengthened significantly.

On the price front, both input costs and output charges continued to increase. Looking ahead, business confidence remained positive.

Services activity strengthened, but manufacturing output recorded its slowest increase since March. Overall new orders rose at their most subdued rate in three months, even as new export orders continued to grow. Employment expanded at the weakest pace in 14 months, with hiring trends differing notably between sectors, while backlogs of work continued to build.

On the price front, input costs rose sharply, but output charge inflation eased to a four-month low. At the same time, persistent inflation concerns weighed on sentiment, pushing year-ahead output expectations down to their lowest level since July.

With the headline PMI holding above the 50-point threshold, which separates expansion from contraction, October’s reading suggests that both manufacturing and services collectively sustained their growth trajectory. The lack of change from September’s 52.30 highlights a period of steady operating conditions rather than acceleration or slowdown.

In the context of month-over-month comparisons, the “Actual” figure for October reflects a continuation of the same expansion rate seen in the previous month, while the “Previous” value captured September’s performance versus August. The flat reading implies that, at least for now, Japan’s private sector is maintaining its existing growth momentum without significant new tailwinds or headwinds emerging in October.

The latest reading, updated on 23 October 2026, signals a firmer expansion in business activity, as any figure above 50 indicates growth in the sector. The rise from September’s level suggests that service providers in Japan experienced a modest but improving pace of demand and activity at the start of the fourth quarter.

While the increase is incremental, it reinforces the picture of a steadily expanding services economy, an important pillar for Japan as it continues to balance domestic demand dynamics and broader global economic uncertainties.

Despite the decline, the latest reading, released with updated data on 23 October 2026, keeps the PMI comfortably above the 50-point threshold that separates expansion from contraction. This suggests that factory activity in Japan continues to grow, albeit at a slightly slower pace than in the previous month.

The softening in the headline index points to a moderation in the sector’s recent strength, which investors and policymakers will watch closely for signs of whether Japan’s manufacturing recovery can maintain its current expansionary trajectory into the final months of 2026.

The tech-led selloff followed Meta Platforms’ (-7%) announcement of plans to boost capital expenditure, reviving worries that major technology firms may need to take on additional debt to finance an expansion of their AI infrastructure. At the same time, rising geopolitical tensions in the Middle East added to the pressure on equities, driving some investors toward the relative safety of government bonds.

At the same time, the core index that excludes both fresh food and fuel—closely monitored by the Bank of Japan as a more accurate measure of demand-driven inflation—climbed 2.4% year-on-year in September. That marked its first acceleration since October 2025 and the fastest pace in six months. In response to evolving price dynamics, the BoJ raised its policy rate by 25 basis points to 1.25% at its September meeting, lifting borrowing costs to their highest level since April 1995.

The month-on-month reading compares price changes in September with those in August, while the “previous” figure reflects August’s change versus July. The shift from 0.1% to 0.0% suggests a pause in short-term inflationary pressure, which may influence expectations around monetary policy and consumer demand dynamics in the coming months. Investors and policymakers will be watching subsequent releases closely to see whether this marks a temporary stabilization or the start of a broader cooling in Japan’s price environment.

The data are based on a year-over-year measure, comparing price levels in each reported month with the same month a year earlier. August’s 1.9% reading was calculated against August of the previous year, while September’s 2.1% figure reflects the change from September a year ago. The uptick suggests that price pressures, while still contained, remain persistent enough to keep inflation slightly above the pace seen during the prior month.

According to the latest data update on 22 October 2026, the September reading indicates that price momentum has effectively flattened on a monthly basis. While August’s 0.1% increase suggested a modest uptick in consumer prices from July, the shift to 0.0% in September points to a pause in short-term inflationary pressure.

The comparison is based on month-over-month changes, meaning the latest figure reflects how prices in September moved relative to August, while the previous indicator captured the change in August relative to July. With inflation now at a standstill on this timeframe, markets and policymakers may view the data as a sign of stabilizing consumer prices after a mild increase in the prior month.

The figures are based on a year-over-year comparison, measuring price changes in each month against the same month a year earlier. The “previous” reading of 1.7% reflects August’s increase versus August a year before, while the “actual” 2.1% reading captures September’s gain against September of the prior year. The move from 1.7% to 2.1% indicates a noticeable pickup in core price growth across Japan’s economy during September.

The latest core CPI data will likely feed into ongoing market discussions about the trajectory of Japan’s inflation trend and its implications for future policy decisions, as investors and analysts monitor whether this acceleration proves persistent or temporary.

At the same time, US and Israeli forces have reportedly prepared plans for renewed military action after next month’s midterm elections, with Iran’s energy infrastructure seen as a likely focus. Despite rising regional tensions and threats to shipping through the Strait of Hormuz, crude exports from the Persian Gulf have recovered to levels close to those seen before the outbreak of conflict.

In Europe, Ukraine stepped up its attacks on Russian refineries this week against the backdrop of a US-Russia agreement covering diesel supplies.

Markets continued to digest Q3 inflation data. While annual inflation eased to 3.7% in the quarter, sentiment remained wary amid expectations that inflation could edge higher again after a temporary pullback in fuel prices. Inflation also stayed above the RBNZ’s 1–3% target range. Rising oil prices added to the cautious tone, stoking concerns about inflation expectations and the possibility of further rate hikes.

Sector-wise, technology, consumer discretionary, and financial stocks dragged on the index. Notable decliners included Meridian Energy (-1.5%), East Income (-2.4%), EBOS Group (-0.9%), and Summerset Group. For the week, the benchmark is on track for a 0.6% decline, after ending nearly flat in the prior week.

The 11-point drop suggests households are becoming markedly more cautious about their personal finances and the broader economic outlook. While the index remains in negative territory, the deeper decline underscores renewed pressure on consumer mood at the start of the fourth quarter, a period that is typically crucial for retail and services activity.

With sentiment now back at more pessimistic levels, the October data may heighten concerns about the resilience of consumer-driven growth in the UK, as weaker confidence often translates into restrained spending and delayed big-ticket purchases.

The October 2026 reading, updated on 22 October 2026, marks a notable reversal from the previous month, when the index had remained in expansionary territory above the 50 threshold. The drop below 50 signals a broad weakening in business activity across Australia’s services industry, suggesting softer demand and potentially rising headwinds for the broader economy.

With services making up a substantial share of Australia’s economic output, the latest PMI data will likely heighten concerns about the momentum of growth heading into the final quarter of 2026, and may influence expectations around policy responses and corporate outlooks in the coming months.

Despite the uptick, the indicator remains below the 50.0 threshold that separates expansion from contraction, signaling that Australian manufacturing is still in a mild downturn. The 0.1-point increase suggests that while conditions remain under pressure, the pace of contraction has eased slightly compared with September.

Investors and policymakers are likely to view the latest reading as a sign of tentative stabilization rather than a turnaround, with markets waiting to see whether subsequent months can push the index sustainably back into expansionary territory.