Japan PMI January 2020


Japan: Composite PMI jumps to a four-month high in January

January 24, 2020

A flash reading of the Jibun Bank composite Purchasing Managers’ Index (PMI) showed an increase to 51.1 in January from a revised 48.6 in December (previously reported: 49.8). The index therefore displayed growth in the Japanese private-sector economy in January from the previous month, after showing a contraction in December.

The services sector continued to lead the way in January, with the PMI hitting 52.1, up from 49.4 in December, as stronger increases in new business and employment were recorded, while output charges also moved into inflation territory.

The manufacturing sector, however, languished in January, with the PMI logging 49.3, up from 48.8 in December but evident of a contraction in the manufacturing sector.

Commenting on the reading, Joe Hayes of IHS Markit said: “While official data are yet to confirm it, the fourth quarter looks on track to register and ugly decline in GDP. The January flash numbers will certainly allay fears for now of an impending technical recession in Japan.”

FocusEconomics Consensus Forecast panelists expect private non-residential investment to rise 1.1% in 2020, which is up 0.3 percentage points over last month’s projection. In 2021, the panel sees private non-residential investment expanding 1.6%.

Author:, Economist

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Japan PMI Chart

Japan PMI January 20 20

Note: Jibun Bank Composite, Manufacturing and Services Purchasing Managers’ Index. Readings above 50 indicate an overall increase compared to the previous month, and below 50 an overall decrease.
Source: IHS Markit and Jibun Bank.

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