The manufacturing sector in Japan was stagnant in December but at least moved out of contraction, the latest survey from Jibun Bank revealed on Monday with a manufacturing PMI score of 50.0.
That’s up from 48.7 in November, and it’s right on the line that separates expansion from contraction.
A key factor helping to lift the PMI reading was a much slower and only marginal reduction in overall new business in December. Moreover, the latest reduction in new work was the softest since May 2024.
While companies often noted that demand conditions remained relatively subdued, some firms recorded an improvement in sales amid new projects and stronger-than-anticipated customer spending. New export orders meanwhile fell at a slightly slower and modest rate at the end of 2025. Lower overseas sales were partly linked to weaker demand across Asia, and for semiconductors in particular.
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