Japan Manufacturing PMI (November) 49.0 (prior 50.7)

The flash reading is here, it came in at 49.4:

• Japan preliminary November PMI, manufacturing plunges to contraction, services on the edge

From the report on the final result:

• “The economic landscape of Japan’s manufacturing sector worsened midway through the final quarter of 2022, according to latest S&P Global PMI data. The headline PMI reading slipped below the neutral 50.0 threshold for the first time since January 2021 and was accompanied by strong reductions in output and new orders. Cooling market conditions, sustained cost pressures and weak underlying demand, both domestically and internationally, were reportedly pivotal factors contributing to the declines.
• “Meanwhile, there were tentative signs that inflationary pressure was easing in November, as signalled by the slowest rate of input cost inflation since September 2021. That said, selling price inflation remained among the sharpest on record to indicate that price pressures are likely to remain in the coming months and contribute to low levels of demand. Concerns surrounding price pressures also dampened business sentiment which did weaken slightly from October. That said, the degree of confidence remained above its historical average amid hopes for a sustained improvement on COVID-19 conditions and successful product launches."

The messages on inflation are mixed in that commentary. Not enough to change BOJ policy IMO.

Still to come:

• Two speakers from the Bank of Japan coming up today - Asahi and Governor Kuroda