Flash PMI from Japan - manufacturing November 2024

Jibun Bank / S&P Global

Japan flash preliminary jibun pmi November 2024 2

In summary from the report:

  • Contraction Continues: Japanese private sector activity contracted for the second month in November, though the decline was less pronounced than in October (49.6).
  • Services vs. Manufacturing: Service providers saw slight activity growth, while manufacturing output fell sharply, marking the steepest drop since April.
  • Demand Stagnation: Overall demand remained stagnant, with new business in services steady but manufacturing new orders declining for the 18th consecutive month.
  • Job Growth: Employment rose at the fastest pace in four months, supported by an increase in outstanding business.
  • Elevated Price Pressures: Input costs remained high due to expensive raw materials and a weak yen, with firms accelerating price hikes for goods and services to offset these costs.

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I spoke earlier that the CPI data would provide support for arguments for a rate hike:

This PMI data argues the opposite!