Japan’s Nomura/JMMA Purchasing Manager Index fell to 52.3 in November, showing that the pace of growth in the manufacturing sector slowed for the second consecutive month. Meanwhile, October’s Industrial Production readings showed that output grew less than economists expected to add just 0.5% from the previous month. Production fell -15.1% from a year earlier, less than September’s -18.9% decline but more than the -13.4% that had been forecast ahead of the release. Lower output of cars (-0.14%) and electronic parts (-0.2%) led the metric lower. These are Japan’s chief export commodities, so sluggish performance here is a worrying sign of ebbing support from global inventory restocking and fiscal stimulus efforts, which could spell trouble for the nascent recovery in the world’s second-largest economy.
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