au Jibun Bank’s Japan Nov manufacturing PMI rises to 54.5 on stronger output

SINGAPORE (ICIS)–au Jibun Bank’s manufacturing purchasing managers’ index (PMI) for Japan rose to 54.5 in November from 53.2 in October, indicating the strongest improvement in the health of the sector since January 2018, the Japanese bank said on Wednesday.

A PMI reading above 50 indicates expansion in the manufacturing economy, while a lower number denotes contraction.

“Businesses reported that client demand had continued to recover as sales were boosted by increased investment into development of new products, ” au Jibun Bank said.

New export orders growth hit a five-month high in November with anecdotal evidence pointing to concentrated growth in South East Asia, it said.

However, firms continued to report significant supply chain disruption had intensified price pressures midway through the fourth quarter, with manufacturers commenting that material shortages and delivery delays in receiving inputs had contributed to the sharpest rise in cost burdens in over 13 years, au Jibun Bank said in a statement.

“Looking forward, business confidence regarding output over the year ahead remained positive with sentiment underpinned by hopes that an end to the COVID-19 pandemic was in sight, which built anticipation that growing domestic and external demand would support the launch and production of new products,” it added.