Japan’s manufacturing sector headline PMI rose slightly to 48.7 in November from October’s 48.2, marking a fifth consecutive month of contraction, though the downturn was the mildest since August, according to the latest S&P Global survey. It remained under pressure as weak demand continued to curb new orders.

Manufacturers reported softer declines in output, with some firms increasing production in anticipation of stronger future demand. Consumer goods producers saw a marginal improvement, while operating conditions remained weak in intermediate and investment goods categories.

Japan’s manufacturing PMI edged up to 48.7 in November from 48.2, marking a fifth month of contraction but the mildest decline since August.
Weak demand and falling new orders persisted, though output softened and employment rose slightly.
Input costs increased at the fastest pace since June, prompting higher selling prices.
Business confidence reached a 10-month high as firms anticipated recovery.

New business continued to fall solidly amid sluggish global conditions, tighter customer budgets, and reduced capital investment. Export orders also declined, albeit at a modest pace, S&P Global said in a press release.

Cost pressures intensified, with input prices rising at the fastest rate since June, driven by increased staffing and raw material expenses. Firms raised selling prices again at a solid pace to offset cost burdens.

Purchasing activity and inventories fell further as companies adjusted to subdued demand. Stocks of purchased items declined at the steepest rate in five years, while delivery times lengthened for a fifteenth straight month due to supplier shortages.

Employment saw a slight uptick—the fastest increase in three months—as firms filled vacancies and prepared for planned expansions and upcoming retirements. Backlogs of work continued to decline for the 38^th consecutive month.

Despite persistent weakness in current conditions, business confidence improved to a ten-month high, reflecting expectations of gradual recovery ahead.

“The latest PMI data showed that Japan’s manufacturing sector continued to struggle with weak demand conditions in November, with firms signalling another solid decline in overall new business. Reduced demand was reported across key markets across Asia, with weaker-than-expected sales across the automotive and semiconductor industries noted in particular,” said Annabel Fiddes, economics associate director at S&P Global Market Intelligence.

“Encouragingly, production fell at a slower and only marginal rate, which coincided with improved optimism around the year-ahead. Overall, business confidence rose to the highest level since the start of the year. Upbeat projections also supported a further rise in employment, as a number of firms anticipated a recovery in market demand over the course of 2026,” added Fiddes. “With Japan’s new prime minister recently announcing a substantial economic stimulus package – the biggest since the pandemic – it will be important to see how this impacts demand and the sector’s performance as the administration seeks to boost investment in key strategic areas such as AI.”

The survey indicated that Japanese factories were more upbeat about the 12-month outlook for output in November. Furthermore, the degree of optimism was the highest seen since January amid reports of new product launches and forecasts of stronger customer demand, added the release.

Fibre2Fashion News Desk (SG)

ICE cotton futures declined yesterday as traders adopted a cautious stance ahead of USDA’s monthly World Agricultural Supply and Demand Estimates (WASDE) report. The report is expected to indicate slower export sales. Profit-booking also took place before Wednesday’s US Federal Reserve meeting.

The more active March 2026 cotton futures settled at 63.68 cents per pound, down 0.25 cents. The contract has shown a declining trend for the sixth consecutive day. The May 2026 contract fell 25 points, while the July 2026 contract eased 24 points. Other contracts closed mixed, fluctuating between 26 points lower and 23 points higher.

ICE cotton futures fell as traders turned cautious ahead of USDA’s WASDE report and Wednesday’s US Federal Reserve meeting.
The March 2026 contract dropped for a sixth straight day, settling at 63.68 cents.
Trading volume hit a 12-session high, while deliverable stocks declined.
Analysts expect only minor WASDE adjustments, with slightly weaker export estimates.

Total ICE trading volume rose to 40,884 contracts, the highest in 12 sessions. Friday’s cleared volume was 36,584. The December 2025 contract entered its final trading day with an exceptionally wide 2,055-point range between 60.79 and 81.34 cents per pound.

Market sentiment remained cautious due to profit-taking ahead of Wednesday’s US Federal Reserve meeting. Traders expect a strong likelihood of a rate cut, but rising US Treasury yields are weighing on market confidence.

The USDA WASDE update for the week ending December 9 is expected to show limited changes, with market analysts anticipating a slight downward revision in export estimates.

ICE deliverable No. 2 cotton stocks on December 5 fell to 13,971 bales from 15,585 bales. Major US stock indices also closed lower ahead of the Fed decision.

This morning (Indian Standard Time), ICE cotton for March 2026 was at 63.73 cents per pound (up 0.05 cent), cash cotton at 61.68 cents (down 0.25 cent), the December 2025 contract at 61.88 cents (down 0.25 cent), the May 2026 contract at 64.80 cents (up 0.04 cent), the July 2026 contract at 65.86 cents (up 0.06 cent), and the October 2026 contract at 66.57 cents (down 0.26 cent). A few contracts remained at their previous closing levels with no trading recorded so far today.

Fibre2Fashion News Desk (KUL)

THG Studios and British fashion brand Topshop have announced a landmark partnership to stage the world’s first AI-driven immersive, shoppable catwalk, certified by the World Record Certification Agency.

THG Studios and Topshop will host the world’s first AI-driven immersive, shoppable catwalk on February 26, 2026 in Manchester.
Supported by PayPal and Google Cloud, the ‘Runway to the Future’ merges physical and digital experiences, featuring instantly shoppable looks.
Timed between London Fashion Week and the BRIT Awards, the event brings together leaders in fashion, retail, tech and culture.

The ‘Runway to the Future’ event will take place on February 26, 2026, at THG Studios’ state-of-the-art Manchester facility, supported by headline sponsor PayPal and technology partner Google Cloud.

Strategically positioned between London Fashion Week and the BRIT Awards, the show aims to establish a new global benchmark for fashion experiences while spotlighting the North West’s growing role in the UK creative economy. Topshop has been confirmed as the fashion house leading the production, underscoring its renewed momentum in British fashion, THG Ingenuity said in a release.

“The world’s first AI-driven immersive, shoppable catwalk is more than a runway, it’s a reimagining of fashion’s future, where creativity meets technology and culture. We’re excited to be part of a movement that’s redefining how fashion is experienced, shared and shopped, and to be leading this new era from the heart of Manchester,” Moses Rashid, global marketing director, Topshop & Topman, said.

Designed as an interactive journey, the runway merges physical and digital environments through Google Cloud’s immersive and shoppable technology. Attendees will move through a series of futuristic zones showcasing AI-generated models, real-time fulfilment innovations and instantly shoppable looks, turning every moment into a point of discovery and engagement.

Curated for an exclusive guest list of top creators, industry leaders and cultural influencers, the event aims to spark new dialogue at the intersection of retail, technology and creativity. THG Studios plans to reveal additional partners in the coming months, positioning ‘Runway to the Future’ as a must-attend moment on the global fashion calendar.

“In collaboration with a global leader in digital payments PayPal, we are creating a new global benchmark for fashion experiences, fusing physical and digital to build connections that matter. The future of fashion is being designed right here in Manchester, and this event is a testament to the creative and technological power of the North, proving that innovation is thriving outside traditional capitals,” Hannah Pym, chief brand and marketing officer, THG Ingenuity, added.

Fibre2Fashion News Desk (HU)