Japan flash PMIs for November. Manufacturing 48.6 (prior 48.4) & Services 50.4 (prior 50.3)

Author: Eamonn Sheridan | Category: News

Japan Jibun Bank / Markit preliminary PMIs for November 

Manufacturing 48.6
  • prior 48.4
Services 49.9
  • prior 50.3
Composite 50.4
  •  prior 49.8

Comment from IHS Markit: 
  • "October PMI data was difficult to interpret as a result of the temporary negative shocks caused by the sales tax and typhoon. However, we can now deduce from the November PMI data that there is a strong possibility of Japan's economy contracting in the fourth quarter. We have seen little rebound following these temporary factors, especially in the service sector where the impact of the tax rise and poor weather was most prominent. 
  • "The service sector, which was boasting reasonable rates of growth up until September, has recorded a marked easing in growth momentum. With manufacturing malaise still strikingly apparent, PMl-implied growth rates in the service sector are insufficient to offset Japan's industrial woes. 
  • "Slack in export demand, the protracted US-China trade war and limited policy levers stack up against the chances of improvements in Japan's economy. Without any drive from the service sector, a quarterly contraction in Q4 seems highly likely."

I bolded one bit. It'll keep easy policy on the boil in japan for a good while yet. The CPI data earlier ensured this also. 

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose