The final numbers for Jibun / S&P Global PMIs from Japan for November 2023.
Services show a big drop, but remain in expansion, at 50.8. This is the slowest in a year.
- vs prior 51.6
Composite slips into contraction at 49.6
- prior 50.5
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The final for the manufacturing PMI in November is here:
Flash reading here:
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From the report, the key points:
- Rate of expansion eases for fifth time in six months in November
- Growth outlook remains among strongest on record
- Cost pressures lowest in over two years
And, analyst comment:
- "November data signalled a further loss of momentum in the services sector, but this should be viewed in the context of a year of strong growth. Over the course of 2023 the Business Activity Index is currently trending at 53.7, easily the highest annual reading since the survey began in 2007.
- "Looking beyond the headline figure the latest survey results contain more positives. New business rose at a slightly faster rate to extend the second-longest spell of growth on record. Employment growth was maintained and outstanding work rose. Moreover, the 12-month outlook for activity improved and was among the strongest on record.
- "Price pressures eased further in November but remain well above their long-run trends. Companies continue to highlight growing cost burdens due to wages, fuel and utilities."
Well, the commentary is certainly upbeat. And, to be fair, the services PMI remains in expansion, which is a good result. Contracting manufacturing and composite is a worrisome niggle though. While the Bank of Japan is not going to spend to much time diving into this report its difficult to see them tightening policy on such results.
ps. the next Bank of Japan meeting,.the last one for this year, is on the 18th and 19th. The 'Summary' of that meeting is on the 27th, which I thought was pretty cool, giving me two days off over Christmas (the 25th and 26th). Until I saw this:
I reckon these guys do it on purpose, yeah?
;-)
