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2025-12-16 08:41:02
[Japan's Manufacturing Sector Contraction Slows] 1. Preliminary December PMI data shows that the contraction rate in Japan's manufacturing sector has slowed, but the weakening momentum in the service sector has led to a slower overall expansion in business activity. 2. Specifically, Japan's preliminary December manufacturing PMI rose to 49.7 from 48.7 in November. Although it remained below the 50-point threshold for the sixth consecutive month, the rate of contraction was the slowest in nearly six months, indicating signs of stabilization. During the same period, the preliminary services PMI slightly decreased to 52.5 from 53.2, showing a slight slowdown in growth. The preliminary composite PMI fell to 51.5 from 52.0 in the previous month. 3. Despite the slowdown in overall economic activity, the job market is showing positive signs. Surveys show that composite employment growth in December was the fastest since May 2024, while unfinished business volume rose at the fastest pace in two and a half years. However, inflationary pressures are also increasing, with the average selling price of goods and services rising at the fastest pace in eight months. Analysts point out that the decline in manufacturing demand has slowed to its lowest level in a year and a half, which may indicate that the industry is nearing its bottom.
