The flash reading is here:
The final reading has come in at 48.3, down from October but not as much as the preliminary reading indicated.
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The key points in the report:
- Output and new orders fall at stronger rates
- Output price inflation eases to softest since July 2021
- Business confidence remains elevated
And, commentary from the report, bolding is mine:
- "The performance of the Japanese manufacturing sector remained downbeat midway through the final quarter of 2023. The headline PMI slipped deeper into contraction territory, largely due to quicker deteriorations in output and new order inflows. As a result, the PMI was at its lowest since February. Panel members often commented on weak customer demand in both domestic and international markets.
- "Inflationary pressures remained elevated in the latest survey period, as signalled by a further marked rise in input costs. That said, the rate of inflation eased to a three-month low. Moreover, selling price inflation edged down to the lowest since July 2021."
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Mixed signals on inflation and a slide into deeper contraction. Its difficult to see the Bank of Japan moving soon to tighten policy on such info coming out of Japan.
