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While Japan’s manufacturing sector showed a slightly slower pace of contraction in December according to the latest PMI data, the underlying sentiment for the future reveals a more complex picture.
Looking ahead to 2026, business confidence, although generally robust, experienced a noticeable dip from the previous month, particularly within the manufacturing industry. Manufacturers are attributing this uncertain outlook to a confluence of global economic conditions, the nation’s ongoing challenge with an ageing population, and a persistent rise in operational costs.
These factors combined suggest that despite some minor improvements in the immediate term, the long-term strategic planning for Japanese manufacturers remains fraught with significant challenges that will require careful navigation.
Source: Original Article
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