Japan: Composite PMI picks up in December
The au Jibun Bank Composite Purchasing Managers’ Index (PMI) rose to 50.0 in December from November’s 48.9. As such, the index is at the 50.0 no-change threshold, signaling no change in private sector operating conditions from the previous month.
The Manufacturing PMI came in at 48.8 in December, down from Novembers 49.0. Meanwhile, the services PMI activity index rose to 51.7 in December (November: 50.3).
The stronger print in December was spearheaded by the services sector, which benefitted from the recent relaxation of border restrictions and a government program to subsidize domestic travel. Although new orders expanded at a weaker pace, output and employment grew at a faster rate. In contrast, the manufacturing sector continued to drag on the composite PMI. Output and new orders continued to fall, while employment grew at a weaker rate. Both sectors continue to be affected by rising prices, with input and output inflation rising in December. This contributed to a decline in business sentiment.