Japan's Manufacturing Sector Shows Signs of Stabilization

In December, Japan's manufacturing sector experienced a slower decline in activity, as indicated by the Jibun Bank Manufacturing Purchasing Managers' Index (PMI), which stood at 49.6. This figure, reported by S&P Global on Monday, marks a slight improvement from November's 49.0, though it remains below the neutral 50 mark.

Insights from S&P Global Market Intelligence

"The final batch of PMI data for 2024 suggested a near-stabilization in the conditions of Japan's manufacturing sector in December. The headline reading edged closer to neutrality, supported by softer reductions in both production and new order intakes. Encouraged by these moderated declines, firms took on additional staff towards the end of the year. This move was partly in anticipation of a future improvement in demand conditions and to address existing labor shortages," noted Usamah Bhatti of S&P Global Market Intelligence in the report.