S&P Global: Japan’s manufacturing sector continues to contract in Nov. ’24

Japan’s manufacturing sector extended its contractionary trend in November 2024, as indicated by the au Jibun Bank Japan Manufacturing PMI. The index declined slightly to 49.0, signalling a fifth consecutive month of deterioration.

New orders fell in the final quarter of 2024, with a slower pace of decline from October. Domestic and international market demand remained weak, resulting in continuous declines in total new orders and new export business for 18 and 33 months, respectively.

Output levels declined last month due to production adjustments in response to weak demand, particularly in the auto and semiconductor sectors, resulting in a PMI reading below 50.0, the strongest since April.

Business sentiment remained high in November, with firms optimistic about new product launches and improving economic conditions. Positive sentiment was at its highest level since August.

Attribution: S&P Global report 

Subediting: M. S. Salama