Japan’s November flash PMIs offered a cautiously constructive signal for the economy, with the Composite Index rising from 51.5 to 52.0 — the best reading in three months and joint-highest since August 2024. Manufacturing activity remained in contraction but improved to 48.8 from 48.2. Services held steady at a solid 53.1.
S&P Global’s Annabel Fiddes noted that the decline in manufacturing output eased to its slowest pace since August, hinting at a gradual move toward stabilization. Business confidence also strengthened, reaching its highest level since January. That pickup in sentiment helped drive the strongest rise in employment since June, as firms look to expand capacity in anticipation of firmer activity ahead.
Inflation pressures remain a lingering concern. Input costs rose at the fastest rate in six months amid higher labor expenses and supplier price increases. In response, firms lifted selling prices at a solid pace to protect margins.
