JEQ - Japan's manufacturing activity falls further amid weak demand on market uncertainty

2024-01-04 00:35:10 ET

• According to a private-sector survey released on Thursday, Japan's manufacturing activity declined at the fastest rate in ten months in December, as output and new orders fell due to market uncertainties.

• The au Jibun Bank Japan Manufacturing PMI was revised upward to 47.9 in December 2023 from a flash figure of 47.7. That said, the latest result was lower than November's reading of 48.3, pointing to the seventh straight month of contraction in factory activity and the steepest pace since February.

• "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.

• "Firms are confident that client destocking will soon end and that new product launches will help to support an upturn in production during 2024," Smith said.

• Domestically, Japan was rocked by an earthquake that has claimed at least 65 lives and a collision at Tokyo’s Haneda airport involving Japan Airlines.

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