Japan PMI Manufacturing was finalized at 54.5 in November, up from October’s 53.2. That’s the best reading since January 2018, and the 10th consecutive month of overall growth. Markit noted that output and new orders rose at faster rates. There was sharp rise in cost burdens amid sustained supply chain disruption. Businesses reported strong optimism regarding future output.
Usamah Bhatti, Economist at IHS Markit, said: “Anecdotal evidence indicated supply chain disruption continued to hinder activity within the sector. Firms recorded a sustained and marked deterioration in lead times in November. Moreover, material shortages and logistical disruptions contributed to a rapid rise in average cost burdens, as input prices rose at the fastest pace since August 2008.
“Beyond the immediate future, Japanese manufacturers remained confident that output would rise over the coming 12 months. Firms were hopeful that an end to the COVID-19 pandemic would accelerate the launch and mass production of new products, amid a broad-based boost to demand in both domestic and international markets. This is in line with the IHS Markit forecast of a 5.3% rise in industrial production in 2022.”
