Japan’s Manufacturing PMI was finalized at 49.0 in November, down from October’s 49.2, marking its lowest reading since March. The decline reflects ongoing challenges, with weaker demand leading to sustained declines in new orders and production levels.
S&P Global Market Intelligence’s Usamah Bhatti described the sector’s performance as “downbeat,” noting subdued capacity pressures and firms reducing employment for the first time in nine months due to the lack of demand-driven growth.
Cost inflation remained elevated in November, prompting manufacturers to increase selling prices at a stronger rate to protect margins.
However, firms remain optimistic about the future, with confidence reaching its highest level since August. Optimism is supported by expectations of domestic and global economic recovery, alongside planned new product launches that could drive future sales.
Separately, capital spending rose 8.1% yoy in Q3, exceeding expectations of 6.7% yoy and accelerating from Q2’s 7.4% yoy growth. This marks the fastest annual growth in investment since Q4 last year, providing a silver lining amid subdued manufacturing activity.
