January Sees a Decline in Japan's Manufacturing Activity

According to the latest report by S&P Global, Japan's manufacturing sector experienced a downturn in January. The Jibun Bank Manufacturing Purchasing Managers' Index (PMI) stood at 48.7, indicating a contraction as it remained below the neutral 50 mark. This figure also represents a decrease from December's 49.6, highlighting a continued trend of decline.

Insights from S&P Global Market Intelligence

Usamah Bhatti, an analyst at S&P Global Market Intelligence, commented on the findings. "The initial PMI results for January 2025 show that Japan's manufacturing sector maintained its subdued performance. Both output and new orders have fallen further into contraction. Additionally, the rate of job creation has slowed down, and there was a significant reduction in outstanding business," Bhatti explained.