Japanese manufacturing activity shrank by the most in 10 months in December, as demand ebbed in Asia’s largest advanced economy.
The au Jibun Bank Japan manufacturing purchasing managers’ index came in at 47.9, the lowest reading since last February and well below the 50-point threshold that separates expansion from contraction.
Weaker domestic and overseas demand for Japanese goods dented new orders and output and dragged the PMI lower.
“Demand was reported to be lower from key export clients based in China, Europe and North America, and from important sectors like electronics,” said Paul Smith, economics director at S&P Global Market Intelligence.
“Cost pressures nonetheless increased, with input price inflation rising to a three-month high,” he added.
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