Japan’s manufacturing sector stabilizes as the decrease in demand eases, according to PMI data

Japan’s Manufacturing Sector Shows Signs of Stabilization

In December, Japan’s manufacturing sector halted its previous decline, as demand decreased at a slower rate compared to earlier months. According to a private survey, the S&P Global Japan Manufacturing Purchasing Managers' Index (PMI) remained steady at 50.0, up from 48.7 in November. This reading marks the threshold that distinguishes growth from contraction, signaling an end to five consecutive months of worsening conditions.

Annabel Fiddes, economics associate director at S&P Global Market Intelligence, noted that the manufacturing industry in Japan experienced a period of stability as the year concluded. The reduction in new orders last month was the mildest since May, suggesting a potential shift toward recovery.