According to a private survey released on Wednesday, Japan’s factory activity declined for the third consecutive month in January, but manufacturers’ expectations were still positive due to better supply and price conditions.
In the midst of deteriorating global economic conditions, Japanese businesses are being pressured to raise wages during labour negotiations this spring in order to combat inflation and support the consumption-driven recovery in the third-largest economy in the world.
The au Jibun Bank Japan Manufacturing Purchasing Managers’ Index was unchanged from the flash reading and the final reading for the previous month, which was the lowest level since October 2020, coming in at 48.9 in January.
According to Tim Moore, economics director at S&P Global Market Intelligence, which conducts the survey, ‘weak global economic conditions continued to hold back customer demand across the Japanese manufacturing sector.’
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