Japan preliminary November manufacturing PMI 49.0 (prior 49.2)

Flash PMI from Japan – manufacturing November 2024

Jibun Bank / S&P Global

In summary from the report:

• Contraction Continues: Japanese private sector activity contracted for the second month in November, though the decline was less pronounced than in October (49.6).
• Services vs. Manufacturing: Service providers saw slight activity growth, while manufacturing output fell sharply, marking the steepest drop since April.
• Demand Stagnation: Overall demand remained stagnant, with new business in services steady but manufacturing new orders declining for the 18th consecutive month.
• Job Growth: Employment rose at the fastest pace in four months, supported by an increase in outstanding business.
• Elevated Price Pressures: Input costs remained high due to expensive raw materials and a weak yen, with firms accelerating price hikes for goods and services to offset these costs.

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I spoke earlier that the CPI data would provide support for arguments for a rate hike:

• Japan October headline CPI +2.3% (expected +2.2%, prior 2.5%)

This PMI data argues the opposite!

This article was written by Eamonn Sheridan at www.forexlive.com.