The Markit/Nikkei Japan Final Manufacturing Purchasing Managers Index (PMI) was a seasonally adjusted 52.6 in November, a touch below the flash reading of 52.8 but still higher than a final 52.4 in the previous month.
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Speaking about the figures chief economist at Investec Philip O’Sullivan said: “While the latest Investec Manufacturing PMI Ireland report shows a further solid strengthening of business conditions in the Irish manufacturing sector in November, the pace of growth has moderated to its weakest in 21 months”.
The reading was the highest since June but remained well below the 50-point level, pointing to a deterioration in activity and suggesting the world’s second-largest economy continues to lose momentum, albeit at a more gradual pace than panicky global investors had feared this summer.
In November, the official purchasing managers index fell to 49.6, according to the National Bureau of Statistics. The non-manufacturing PMI rose to 53.6 from 53.1 a month earlier. The index has now been below 50 for nine consecutive months.
The euro inched up to $1.0575, nursing losses just above a seven-and-a-half-month low of $1.0557 marked on Monday.
China’s official manufacturing PMI slowed more than expected in November, missing forecasts.
Spot gold was up about 0.3% at $1,067.81/oz, although it remained close to a almost six-year low of $1,052.46 plumbed last week, pressured by the recently robust dollar and the growing expectation of higher United States interest rates.
In Australia, the S&P/ASX 200 index was up 1.3% to 5,231.70 – leading the region’s gains. As a result, manufacturers raised their selling prices, but only marginal.
Some see the slowdown in China’s manufacturing activity as an inevitable step in the economy’s transition. While ongoing expansion in the sector signalled by today’s figure is to be welcomed, the positive trend isn’t broad based across industry and isn’t supporting sufficient confidence to prompt a return of employment growth.
But British manufacturing growth slowed last month with the Markit/CIPS manufacturing PMI at 52.7 from a revised 55.2 in October.
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However, many economists at home and overseas agree that further measures need to be taken if China is to avoid a “hard landing” as its economy slows, and more infrastructure spending is likely to be announced in the coming months – though the government has suggested it will try to fund some of this by public-private partnerships.
