The au Jibun Bank Flash Japan Composite PMI rose slightly to 49.8 in November 2024 from 49.6 in October, according to preliminary data.
Japan private sector shrinks for second month
Despite the uptick, this marked the second consecutive month of contraction in private sector activity. The service sector registered modest growth, but this was countered by a continued decline in manufacturing output, which fell for the fifth straight month.
Demand remains muted
Demand conditions remained subdued, with new orders stagnating and foreign orders continuing to decline. On the brighter side, employment growth reached a four-month high, and outstanding business increased for the first time since April. Cost pressures persisted due to higher raw material prices and a weaker yen. While input cost inflation showed some easing, output prices rose at a quicker pace. Business confidence improved, reflecting cautious optimism about the future.
