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Japan’s factory activity falls to lowest in 26 months amid global economic slowdown
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  • Japan’s factory activity falls to lowest in 26 months amid global economic slowdown

Japan’s factory activity falls to lowest in 26 months amid global economic slowdown

FP Staff • January 4, 2023, 15:43:44 IST
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The au Jibun Bank Japan manufacturing purchasing managers’ index was down 48.9 in December from November’s final 49.0

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Japan’s factory activity falls to lowest in 26 months amid global economic slowdown

Tokyo: Japan’s factory activity fell at the sharpest pace in 26 months in December, a business survey showed. The companies have been predicting further declines amid a global economic slowdown. The au Jibun Bank Japan manufacturing purchasing managers’ index was down 48.9 in December from November’s final 49.0. The figure was slightly higher than 48.8 reading which was the weakest since October 2020. Also, the Japanese factory output remained below the 50-line for the second month in a row. The survey was compiled by S&P Global Market Intelligence. Laura Denman, an economist with the firm said: “The downturn was largely centered around the current demand environment which is weak both internationally and domestically.” According to the survey’s subindexes, for a sixth month in December, output and new orders extended their contraction which was at slower paces than last month. The survey also showed that the input price inflation of Japan was cooling to a 15-month low, indicating easing cost pressures, but all the other results signalled darker prospects for Japanese companies in the beginning of 2023. “Forward-looking indicators are increasingly painting a gloomier picture for Japan’s manufacturing sector in the future,” Denman said. Keeping in view the data, analysts expect Japan’s production to remain subdued for the coming months due to declining overseas demand, with the massive Covid-19 cases surge in China posing a further downside risk. With inputs from agencies Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.

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