Japan's manufacturing sector experienced a continued, yet softer, contraction in November, according to a survey by S&P Global published Monday.
The latest S&P Global Japan Manufacturing Purchasing Managers' Index (PMI) rose to 48.7 in November from 48.2 in October, marking the slowest rate of deterioration in three months.
The latest data confirmed a sustained downturn in new orders, reflecting persistently weak demand conditions.
However, production levels were cut at the softest pace since August.
Business confidence among goods producers simultaneously picked up, reaching a 10-month high.
This optimism was partly based on forecasts for stronger future customer demand and new product launches.
Conversely, input cost inflation quickened to a five-month high, driven by increased expenses for raw materials and staff.
In response, firms implemented another solid increase in their own selling prices to protect margins.
The challenging demand environment was further evidenced by a sustained reduction in purchasing activity and inventories.
While the pace of decline in input buying was the softest in five months, stocks of purchased items fell at the steepest rate in five years.
Meanwhile, job creation accelerated to a three-month high.
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