Japan's manufacturing sector showed signs of stabilization in December as factory activity contracted at a slower pace, with easing declines in production and new orders. Although the PMI remained below 50, indicating contraction, it edged closer to neutral territory.
TOKYO (Reuters) - Japan 's factory activity shrank at a slower pace in December as declines in production and new orders eased, a private-sector survey showed on Monday, edging closer to stabilisation after recent falls. The final au Jibun Bank Japan manufacturing purchasing managers' index ( PMI ) rose to 49.6 in December, indicating the softest contraction in three months. The index was slightly higher than 49.5 in the flash reading and 49.0 in November but stayed below the 50.
0 threshold that separates growth from contraction for the sixth straight month. 'The headline reading moved closer to neutrality amid softer reductions in both production and new order intakes,' said Usamah Bhatti at S&P Global Market Intelligence, which compiled the survey. The subindex of production shrank for a fourth straight month in December but the contraction was also slower than last month. Manufacturers noted that subdued new orders were the main factor behind the decline in output. New orders contracted for the 19th straight month on subdued demand in both domestic and key overseas markets. Some firms in the survey suggested the semiconductor market was behind the weakness in new orders. Employment expanded in December, reversing its fall in November, to reach its highest level since April. Firms in the survey said they hired more workers due to labour shortages as well as in preparation for future demand. Input prices grew at the strongest pace since August, with firms citing higher costs of raw materials and labour. The weak yen also boosted inflation. To cope with rising prices, firms raised their output prices at the fastest rate in five months. Manufacturers stayed confident about their outlook as they expect business to expand thanks to the launch and mass production of new product
Manufacturing PMI Japan Economic Outlook Stabilization
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Japan's factory activity falls at fastest pace in 8 months, PMI showsJapan's factory activity falls at fastest pace in 8 months, PMI shows
Read more »
South Korea factory activity picks up on strong Asia demand, PMI showsSouth Korea factory activity picks up on strong Asia demand, PMI shows
Read more »
Caixin PMI: China's factory activity expands again in November, beats forecastsThe private survey signals that the country’s recent stimulus efforts have already helped to lift certain sectors of China’s ailing economy.
Read more »
China Nov factory activity expands for second month as Trump threats loomChina Nov factory activity expands for second month as Trump threats loom
Read more »
China SMEI: Activity picked up in December – Standard CharteredHeadline SMEI recovered 0.2pts to 50.6 in December; average reading rebounded to above-50 level in Q4. While services activity improved, performance and expectations sub-indices stayed below 50. Manufacturing SMEs continued to outperform on a solid m/m increase in sales and new orders.
Read more »
ShapeHero Factory Receives Festive December UpdatesIndie game developer Asobism Company is releasing several updates for ShapeHero Factory this December. These updates include the addition of Ascension 6, a new level of difficulty, a preview of the upcoming Challenge Mode featuring infinite waves of enemies, and two limited-time festive avatar skins.
Read more »