Japan PMI Manufacturing was finalized at 49.0 November, up from October’s 48.7. While still concretionary, it’s already the highest reading since August 2019. Markit also noted softer falls in both output and news orders. Businesses also remained optimistic regarding future output.
Usamah Bhatti, Economist at IHS Markit, said: “Concern remains that weaknesses caused by the COVID-19 pandemic persisted as both output and new orders both fell for the twenty-third month in a row. Furthermore, infection rates have surged in both domestic and international markets which resulted in a renewed fall in export orders, which dampened confidence further.
“However, Japanese manufacturers continue to report a positive outlook beyond the immediate concerns surrounding the sector. Around 33% of survey respondents foresee a rise in output over the coming year amid hopes that the pandemic dissipates and a robust economic recovery. Currently, IHS Markit expects industrial production to grow 7.3% in 2021 although this is from a lower base and does not fully recover the output lost to the pandemic.”
Also from Japan, unemployment rate rose to 3.1% in October versus expectation of 3.0%. Capital spending dropped -10.6% in Q3 versus expectation of -12.0%.
