To suppress generation of iron loss in an outer rotor type rotary electric machine provided with a magnetic body which forms other magnetic pole for the magnetic pole of a magnet.

On the inner circumferential surface of the circumferential wall 7a of a yoke 7 forming a bottomed cylindrical outer rotor 5, a plurality of arcuate magnetic bodies 9 are arranged and a recess 10 for receiving a magnet 8 is formed by adjoining magnetic bodies. The magnetic body is formed of a dust core. As compared with a conventional magnetic body formed as a magnetic pole of an iron lump, generation of iron loss can be suppressed for high frequency AC magnetic field and thereby generation efficiency can be enhanced when it is used as a generator. Furthermore, when two color bond magnet is employed, integration of the magnet and the magnetic body is facilitated and attachment performance is enhanced.