Fashion
Japan factory activity stabilises after 5 months of contraction in Dec
New business declined at its slowest pace in 19 months, marking the weakest reduction since May 2024. While overall demand remained subdued, some manufacturers reported improved sales supported by new projects and stronger-than-expected customer spending. Output was broadly stable, with production falling only marginally at the slowest pace in the current six-month downturn, S&P Global said in a press release.
Employment continued to expand, with firms increasing staffing levels at the fastest rate in four months, often in anticipation of stronger demand ahead. This helped reduce outstanding business, although the pace of backlog depletion eased to its slowest level in 18 months. Purchasing activity fell only marginally, while manufacturers continued to run down inventories amid muted demand conditions.
Japan’s manufacturing sector stabilised in December 2025 after five months of decline, with the S&P Global PMI rising to the neutral 50 from 48.7 in November.
New orders fell at the slowest pace in 19 months, output was broadly stable, and employment increased.
However, input costs surged at the fastest rate since April, lifting selling prices despite subdued demand.
Supply-side pressures persisted, as delivery times lengthened due to material shortages and extended shipping times, though the deterioration in vendor performance remained modest. Sub-sector data showed improved conditions for consumer and investment goods producers, while intermediate goods manufacturers faced weaker performance.
Cost pressures intensified notably in December. Input prices rose at the fastest pace since April, driven by higher raw material and labour costs, as well as the impact of a weak yen. As a result, manufacturers raised output charges again at a solid pace to protect margins.
Business confidence dipped from November’s recent high but remained above the long-run average. Firms continued to express optimism about the year-ahead outlook, citing hopes of new product launches and a recovery in customer demand during 2026, despite ongoing concerns around global economic conditions, rising costs, and demographic challenges.
“Japan’s manufacturing industry saw conditions stabilise at the end of the year, with factories reporting a much weaker reduction in sales and largely steady production levels,” said Annabel Fiddes, economics associate director at S&P Global Market Intelligence. “There was also good news on the employment front, with staffing levels rising at a slightly quicker pace as firms projected greater demand in the months ahead.”
“There were signs of stronger cost pressures in December, with input prices rising at the sharpest rate since April as higher raw material and labour costs, along with a weak yen, pushed up expenses. This led firms to raise their charges solidly as they looked to ease pressure on margins,” added Fiddes.
Fibre2Fashion News Desk (SG)
Total merchandise trade between the two countries stood at $3.62 billion in FY24-25. They share complementarities across several sectors, and the FTA will be a catalyst to further enhance the bilateral trade by providing certainty and predictability to businesses, including micro, small, and medium enterprises (MSMEs), the Ministry of Commerce and Industry said in a press release.
India and Israel have begun the first round of FTA negotiations in New Delhi through February 26, 2026, following the November 2025 ToR signing.
With bilateral trade at $3.62 billion in FY25, talks cover goods, services, rules, SPS, TBT and IPR.
Officials highlighted opportunities in technology and innovation, aiming for a balanced pact to boost trade, supply chains and economic cooperation.
During this round, technical experts from both sides will engage in sessions covering various aspects of FTA such as trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedure and trade facilitation, intellectual property rights, among others.
During the opening session, Indian Commerce Secretary, Rajesh Agrawal, underscored that the FTA negotiations had begun at an opportune moment of Prime Minister Narendra Modi’s visit to Israel from February 25-26, 2026.
Agrawal underscored the significant opportunities available to both sides in sectors such as innovation, science and technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture, and services. He emphasised that the FTA would enable both countries to harness and fully leverage these opportunities.
Chief Negotiator of India, Ajay Bhadoo, Additional Secretary, Department of Commerce, reiterated the significance of this engagement for the two countries and encouraged both sides to work on a balanced agreement to build a forward-looking framework for an evolving partnership.
Chief Negotiator of Israel for the FTA, Yifat Alon Perel, Senior Director Trade Policy and Agreements and Deputy Trade Commissioner, Foreign Trade Administration, Ministry of Economy and Industry, Israel, expressed that the two countries shared a close relationship, and that the FTA has the potential to strengthen supply chains, enhance cooperation and open new markets for both countries.
This engagement highlighted the strategic importance of India-Israel bilateral relationship and reinforces India’s commitment to strengthen economic partnerships in line with national priorities and global aspirations. Both sides are working towards concluding a balanced and mutually beneficial agreement, added the release.
Fibre2Fashion News Desk (SG)
New Balance reported record 2025 global sales of $9.2 billion, up 19 per cent year on year, marking its fifth straight year of double-digit growth.
North America and Europe led gains, while apparel and owned retail each crossed $1 billion.
The brand expanded manufacturing, digital and distribution capabilities, deepened athlete partnerships, and donated $17.3 million to 95 nonprofits worldwide.
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DCCI president Taskeen Ahmed told a press conference that the unchanged policy rate has forced businesses to borrow from banks at 16-17 per cent interest, creating mounting pressure.
High lending rates, unstable law and order marked by extortion, energy uncertainty, lack of coordination in revenue management and absence of policy continuity in industrial regulations are affecting the trade environment and eroding confidence in investment and business operations, trade body DCCI has said.
Rising production and distribution costs are also fuelling inflationary pressures, it noted.
“The high volume of non-performing loans (NPLs) and the reduction of the loan classification period from nine months to three months have created an undesirable situation in the financial sector, which has led to instability in the industrial sector,” he was cited as saying in a DCCI release.
“Industrial production is being hampered due to inadequate gas supply and the recent increase in gas prices for new industries and captive power plants by Tk 40 and Tk 42 per unit respectively,” he said, mentioning that both domestic demand and export targets are being missed as a result.
He also pointed to structural weaknesses in the revenue management system, saying the lack of automation leads to harassment of compliant taxpayers, while many remain outside the tax net, depriving the government of revenue and slowing collection growth.
Taskeen said delays in land acquisition, high land prices, a 41-per cent average increase in service charges by the Chattogram Port Authority and underutilisation of inland waterways have significantly raised the cost of doing business. “Rising production and distribution costs are also fuelling inflationary pressures,” he added.
As the recently-signed trade agreement with the United States does not guarantee duty-free access for the readymade garment sector, Taskeen called on the government to renegotiate the terms with the US administration.
Fibre2Fashion News Desk (DS)
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