Japan Factory PMI Slides Back to Pandemic-Era Level Ahead of BOJ
- Manufacturing activity gauge shows deepening pessimism
- Japan still struggling with sluggish demand ahead of BOJ
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Activity in Japan’s factory sector deteriorated to a level matching a three-year low, a pessimistic data point for Bank of Japan officials to mull when they meet to decide policy next week.
The au Jibun Bank’s purchasing managers index of activity in Japan’s manufacturing sector dipped to 47.7 in December, the lowest since February and matching the level back in September 2020, when the economy was starting to emerge from the pandemic. The gauge has languished below the 50 mark that separates a contraction from an expansion for seven consecutive months.