Tokyo — Japan’s manufacturing activity grew for 11 consecutive months in December, but at a slower pace than last month as cost pressures remained high while production and new orders growth slowed. ..
While new export sales growth slowed as the number of COVID-19 cases increased in South Korea, companies benefited from a weakened coronavirus pandemic as they shook off some of the resistance to the health crisis. I received it.
The final au Jibun Bank Japan Manufacturing Purchasing Managers Index (PMI) for December fell to 54.3 on a seasonally adjusted basis, easing from 54.5 last month.
This figure shows that the operating conditions of the manufacturing industry are definitely improved compared to the flash readings of 54.2.
“The domestic market was supported by a gradual recovery from the COVID-19 pandemic,” said Usamah Bhatti, economist IHS Markit, who summarized the study.
Despite the high demand for high-tech chips around the world, the recovery in parts supply has eased some of the burden on automobile manufacturing.
However, studies show that overseas orders for Japanese products have slowed growth compared to the overall annual average, as the surge in coronavirus infections, especially in South Korea, has hurt demand.
The Japanese economy suffered a global chip supply shortage in the third quarter of 2021. This was a 3.6% annual decline, partly due to a production bottleneck that hurt production and exports in the quarter.
Production is expected to recover in the final quarter of last year, but manufacturers’ average lead times during that period recorded the worst quarterly performance since the survey began, Bati said.
“Although still optimistic, Japanese commodity producers are wary of the continued impact of pandemics and supply chain turmoil, resulting in the softest drop in confidence since August,” he added. rice field.