Japan’s manufacturing sector remained in contraction in November, though the pace of decline slowed, according to the final S&P Global PMI released Monday.
The headline index rose to 48.7,
- up from 48.2 in October
- broadly matching the flash estimate of 48.8.
While still below the 50 mark separating growth from contraction, the reading marks the slowest decline since August.
Weakness persisted across intermediate and investment-goods producers, while consumer goods showed a mild improvement. New orders continued to fall for the 30th consecutive month, reflecting subdued global conditions, tighter client budgets and muted capital investment. Automotive and semiconductor demand remained soft.
Input cost pressures intensified for a fourth straight month, driven by higher labour and raw-material expenses. Manufacturers lifted selling prices in response. Despite the current downturn, business sentiment reached a 10-month high, supported by expectations of new product launches and recovering demand, particularly in electronics and transport.
The survey noted that Prime Minister Sanae Takaichi’s recently approved ¥21.3 trillion stimulus package could help revive demand, especially in strategic sectors such as AI, though its impact will take time to filter through.
