The Jibun Bank Japan Manufacturing PMI came in at 48.4 in December 2019, compared to the flash figure of 48.8 and the previous month's final 48.9. Output fell at the second-fastest rate in over three-and-a-half years, only narrowly beaten by March's decline. In addition, new orders continued to drop amid a further reduction in new export sales due to global trade conflicts and lower demand from China. Stocks of purchases were also trimmed, with firms reporting cost-cutting efforts and reduced purchasing activity. On a positive note, employment continued to rise and business optimism towards output strengthened to an eight-month high. In terms of prices, input costs rose the most since August while output charges were reduced slightly and for the seventh month in a row. Manufacturing PMI in Japan averaged 50.20 points from 2008 until 2019, reaching an all time high of 56.20 points in January of 2014 and a record low of 29.60 points in February of 2009. source: Markit Economics
Manufacturing PMI in Japan is expected to be 50.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing PMI in Japan to stand at 51.00 in 12 months time. In the long-term, the Japan Manufacturing PMI is projected to trend around 50.20 points in 2020, according to our econometric models.