Japan: Services and manufacturing PMIs fall in November
November 20, 2020
The Jibun Bank Composite Purchasing Managers’ Index (PMI)—which combines the PMIs of the services and manufacturing sectors—fell to 47.0 in November according to a flash reading, down from October’s final figure of 48.0. As such, the reading moved further below the 50-threshold, and therefore indicated the tenth consecutive month of worsening operating conditions.
The services PMI ticked down to 46.7 in November from 47.7 in October, likely on deteriorating output and demand. On the manufacturing side, the PMI slipped to 48.3 in November from October’s 48.7 reading, as production, new orders and employment all fell.
Commenting on the outlook, Bernard Aw, principal economist at IHS Markit, reflected:
“Looking ahead, the path to recovery remains fraught with challenges as a renewed rise in the number of Covid-19 cases worldwide could dampen global economic activity and trade, thereby putting Japanese exporters in a tough situation”
Author: Stephen Vogado, Economist