The manufacturing sector in Japan fell into contraction in November, the latest survey from Jibun Bank showed on Thursday with a manufacturing PMI core of 49.0.
That’s down from 50.7 in October, and it moves beneath the boom-or-bust line of 50 that separates expansion from contraction.
Contributing to the sub-50.0 PMI reading was a sharper contraction in output levels at Japanese manufacturing companies. The downturn was the strongest since August 2020 and reportedly resulted from weak customer demand. Reflective of the trends in output was a further contraction in order books. The decline was the fastest since August 2020 amid reports of cooling market demand and ongoing price pressures.
Foreign demand also declined and at a pace that was the sharpest since July 2020. Panel members suggested that overseas clients were looking to downwardly adjust inventory levels.