Japan PMI manufacturing is finalized at 52.6 in December, up from November’s 15-month low of 52.2. Markit noted “solid output expansion on average over Q4, but demand pressures remain subdued”. Also, “business optimism at lowest since November 2016”
Commenting on the Japanese Manufacturing PMI survey data, Joe Hayes, Economist at IHS Markit, which compiles the survey, said:
“The final print of the December Manufacturing PMI showed that Japan’s goods-producing economy looks set to contribute to a bounce-back in GDP growth for Q4. Output increased at the strongest rate since April last year, while new order growth also improved.
“Nonetheless, the survey data provide reason to remain cautious on growth prospects. Most notably, demand pressures were relatively subdued. Exports also declined on the month amid reports of sluggish sales to Europe and China. The fall in confidence, the seventh time this has been the case in as many months, also suggests that companies are becoming increasingly less bullish on the year-ahead outlook. With the sales tax increase set to come into play, fears over the durability of demand conditions are worrying.”
