Full Review

Japan’s factory activity faced challenges in November with a significant decline in production as demand weakened. The final au Jibun Bank Japan manufacturing purchasing managers’ index (PMI) dropped to 49.0, the lowest since March, indicating a contraction for the fifth consecutive month. The subindex of new orders continued to decrease, reflecting subdued demand both domestically and internationally. Firms adjusted their output, particularly in semiconductor and automotive sectors, leading to the fastest fall in production since April. Despite cost pressures, manufacturers raised selling prices to protect margins. However, there was optimism about future business prospects, driven by hopes for new product launches and overall economic recovery.

Conclusion

While Japan’s manufacturing sector faced challenges in November, there is optimism for the future. Despite current difficulties, firms are positive about upcoming business opportunities, reflecting a broader economic recovery outlook.

FAQs

1. What was the PMI in Japan’s manufacturing sector in November?

The PMI in Japan’s manufacturing sector in November was 49.0, the lowest since March.

2. How long has new exports been declining in Japan?

New exports in Japan have been declining for the 33rd straight month.

3. What led to the fall in output in the semiconductor and automotive sectors?

Weak demand prompted firms to adjust their output in the semiconductor and automotive sectors, resulting in the fastest fall in production since April.

4. Why did manufacturers raise selling prices?

Manufacturers raised selling prices to protect margins amid cost pressures from higher prices of labour, logistics, and raw materials.

5. What drove optimism among manufacturers about future business outlook?

Optimism among manufacturers about future business outlook was driven by hopes for new product launches and a broad economic recovery.