The manufacturing result is the lowest in 2 years
Commentary from the report:
“Activity at Japanese private sector firms declined for the first time in three months, according to November flash PMI data. Central to the latest downturn was a poor performance at Japanese manufacturing firms. Cooling demand conditions and acute inflation ary pressures reportedly continued to hamper output and new orders, which both saw solid reductions that were the strongest in 26 and 27 months, respectively. Manufacturing firms also seem to be increasingly wary about their future as indicated by a drop in business sentiment which put the index at its lowest level since May.
“Meanwhile, services firms signalled no change in activity levels from the month prior. Despite this, inflows of new business increased for the third month running as firms reportedly continued to benefit from a boost in tourism volumes following the roll-out of the National Travel Discount Programme in early October. Firms are likely to continue to benefit from the scheme up until it is due to end in December so we can hope to see activity across the service sector pick back up in the coming months.”