Japan flash Nov manufacturing PMI contracts further – au Jibun Bank

SINGAPORE (ICIS)–Japan’s manufacturing purchasing managers’ index (PMI) fell to 49.0 in November from the final reading of 49.2 in October on weaker output and new orders, preliminary estimates from au Jibun Bank showed on Friday.

A PMI reading above 50 indicates expansion while a lower number denotes contraction.

The November figure marks the fifth consecutive month of contraction for the manufacturing sector of the world’s third-biggest economy.

Both output and new orders experienced declines in the latest survey period, with output falling by the largest degree since April, au Jibun Bank said in a statement.

Spare capacity increased due to sustained declines in new orders and a resulting fall in backlogs.

Additionally, firms decreased employment levels for the first time since February.

Although input cost inflation eased to a seven-month low, it remained steep, and the rate of charge inflation was the highest since July.