TOKYO, Jan 5 : Japan’s manufacturing exercise stalled in December as demand declined at a slower tempo from the earlier month, a private-sector survey confirmed, ending a five-month streak of degradation.
The S&P Global Japan Manufacturing Purchasing Managers’ Index (PMI) was flat at 50.0 in December, bettering from 48.7 in November and hitting the break-even level separating enlargement from contraction.
“Japan’s manufacturing industry saw conditions stabilise at the end of the year,” mentioned Annabel Fiddes, an economics affiliate director at S&P Global Market Intelligence.
The decline in new orders in December was the softest since May 2024, the survey confirmed. Although many corporations famous subdued demand, some noticed gross sales had improved, underpinned by new initiatives and stronger-than-expected buyer spending.
While client and funding items sectors reported enchancment in enterprise circumstances, intermediate items makers mentioned they have been weak.
New export orders declined at a barely softer tempo in December from November, partly affected by weaker demand in Asia, significantly for semiconductors, in accordance with the survey.
Looking forward to the subsequent 12 months, total enterprise sentiment eased from November however remained above the survey’s long-run common, the survey mentioned.
“New product releases and greater demand across key industries such as autos and semiconductors were anticipated to boost the sector’s performance in 2026,” Fiddes mentioned.
Some draw back dangers talked about by corporations have been sluggish international financial system, an ageing inhabitants and rising prices, she mentioned.
Staffing ranges within the manufacturing sector rose for the thirteenth consecutive month, whereas the speed of enter costs accelerated to its highest since April, battered by a mixture of will increase in uncooked materials, labour and transportation prices in addition to the weaker yen.
The Bank of Japan in December raised curiosity charges to ranges unseen in 30 years and signalled its readiness to proceed elevating charges.
(Reporting by Satoshi Sugiyama; Editing by Sam Holmes)