Robert Besser
04 Dec 2022, 14:59 GMT+10
TOKYO, Japan: The results of a survey released this week showed that Japan's manufacturing activity contracted for the first time in nearly two years in November due to drops in demand and output caused by a global economic slowdown and high inflation.
As demand is steadily declining and major trading partner China grapples with a renewed COVID-19 surge, Japan's economy will remain under pressure for some time.
The au Jibun Bank Japan Manufacturing Purchasing Managers' Index fell to a seasonally adjusted 49.0 in November from October's 50.7 final, and below the warning level of 49.4.
This marked the first instance the index fell below the 50-mark, which separates contraction from expansion over 22 months, and was its weakest level since November 2020.
Laura Denman, Economist at S&P Global Market Intelligence, which compiles the survey, said, "Cooling market conditions, sustained cost pressures and weak underlying demand, both domestically and internationally, were reportedly pivotal factors contributing to the declines," as quoted by Reuters.
The survey's subindexes showed that old and new orders slipped to their lowest levels since August 2020, with orders from overseas clients suffering the sharpest decline in 28 months.
The weak yen currency is also driving up import prices and increasing the cost of living, stifling the Japanese economy's recovery from the COVID-19 pandemic.
"Concerns surrounding price pressures also dampened business sentiment, which did weaken slightly from October," Denman added.
However, the survey showed that overall manufacturers' business sentiment remained resilient on expectations for a further improvement in Japan's COVID-19 situation.
Get a daily dose of Dallas Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Dallas Sun.
More InformationIn a report by The New York Times, it has been revealed that Israeli officials had obtained a detailed battle ...
NAYPYIDAW, Myanmar: Kyar Win, spokesperson for the Myanmar National Democratic Alliance Army, which launched a surprise offensive last month against ...
While Secretary of State Anthony Blinken has been frantically shuttling around the Middle East trying to stop the Israeli coflict ...
LESBOS, Greece: Greek authorities said a cargo ship sank off the island of Lesbos over the weekend during a storm, ...
COLUMBUS, Ohio: To stop the spread of bird flu, more than 1.3 million chickens will be killed on Ohio's Union ...
In a devastating turn of events, Israel's war on Gaza, sparked by Hamas's unprecedented attacks on October 7, has resulted ...
LONDON - Health experts and tobacco campaigners have strongly criticized New Zealand's decision to repeal laws that aimed to ban ...
NEW YORK, New York - The Dow Jones index was the standout on U.S. financial markets on Thursday with a ...
WASHINGTON D.C.: Despite the ongoing economic uncertainty, major discounts during the Thanksgiving weekend enticed U.S. shoppers, who spent some US$38 ...
BANGKOK, Thailand: This week, Thailand's Deputy Finance Minister Krisada Chinavicharana said after a weaker-than-expected third quarter, the country will downgrade ...
BEIJING, China: The country's commerce ministry said that during a meeting with Vietnamese Prime Minister Pham Minh Chinh in Ho ...
NEW YORK, New York - Retreating bond yields and a higher-then-expected GDP reading for the third quarter boosted U.S. stocks ...