Japan’s November PMI Shows Decline In Manufacturing & Service Sectors

Posted on December 4, 2011

Manufacturing and Service sector activity in Japan slowed in November according to the Markit® PMI surveys. The manufacturing index for November was 49.1, down from 50.6 in the previous month while the service  index clocked in at 49.5, down from 52.3 in October. 

In the manufacturing sector new orders dropped for the 3rd straight month while manufacturing output declined at its fastest pace in seven months. Employment did increase during the month which aided in reducing backlogs.  Prices for raw materials are still rising, but after thirteen months of increases in the rate of inflation was at its weakest. Manufacturers are still unable to pass on those costs, primarily due to increased competition.

The service sector also saw a decline in new orders and order backlogs, however in contrast to the manufacturing sector, staffing levels were also reduced,  however, the reduction was small. Price trends were also the same with prices for raw materials rising and selling  prices falling.  

PMI Index Aug Sep Oct Nov
Manufacturing  51.9  49.3 50.6 49.1
Services  44.3  46.4 52.3 49.5