Fashion
Japan factory downturn eases as PMI inches up to 48.7 in November: S&P
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 38th 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)
Global growth is projected to remain broadly steady over the next two years, easing to 2.6 per cent in 2026 before rising to 2.7 per cent in 2027, an upward revision from the June forecast.
World economy is proving more resilient than anticipated despite persistent trade tensions and policy uncertainty, the World Bank said.
Global growth is projected to stay broadly steady over the next two years, easing to 2.6 per cent in 2026 before rising to 2.7 per cent in 2027.
Global inflation is projected to edge down to 2.6 per cent in 2026, reflecting softer labour markets and lower energy prices.
The resilience reflects better-than-expected growth, especially in the United States, which accounts for about two-thirds of the upward revision to the forecast in 2026.
Even so, if these forecasts hold, the 2020s are on track to be the weakest decade for global growth since the 1960s.
The sluggish pace is widening the gap in living standards across the world, the report says.
In 2025, growth was supported by a surge in trade ahead of policy changes and swift readjustments in global supply chains. These boosts are expected to fade in 2026 as trade and domestic demand soften.
However, the easing global financial conditions and fiscal expansion in several large economies should help cushion the slowdown, a World Bank release said citing the report.
Global inflation is projected to edge down to 2.6 per cent in 2026, reflecting softer labour markets and lower energy prices.
Growth is expected to pick up in 2027 as trade flows adjust and policy uncertainty diminishes.
In 2026, growth in developing economies is expected to slow to 4 per cent from 4.2 per cent in 2025 before edging up to 4.1 per cent in 2027 as trade tensions ease, commodity prices stabilise, financial conditions improve and investment flows strengthen.
Growth is projected to be higher in low-income countries, reaching an average of 5.6 per cent over 2026-27, buoyed by firming domestic demand, recovering exports and moderating inflation.
However, this will not be sufficient to narrow the income gap between developing and advanced economies.
Per capita income growth in developing economies is projected to be 3 per cent in 2026—about a percentage point below its 2000-2019 average.
At this pace, per capita income in developing economies is expected to be only 12 per cent of the level in advanced economies.
These trends could intensify the job-creation challenge confronting developing economies, where 1.2 billion young people will reach working age over the next decade, according to the World Bank.
Fibre2Fashion (DS)
The Confederation of Indian Textile Industry (CITI) expects the upcoming Budget to futureproof India’s textile and apparel sector through measures that will make the arena more resilient, innovative, and globally competitive.
CITI has urged the Union Budget to futureproof India’s textile and apparel sector through reforms on raw material pricing, competitiveness, sustainability and trade facilitation.
Seeking duty-free cotton, technology and green schemes, and export support, CITI said that high US tariffs threaten jobs in a sector vital to GDP, exports and livelihoods.
“Our optimism that the forthcoming Union Budget will significantly move the needle on policy and regulatory reforms is bolstered by the government’s steadfast commitment to the growth and development of India’s textile and apparel sector,” CITI chairman Ashwin Chandran said.
“The Budget enabling the creation of a stronger growth ecosystem for the Indian textile and apparel sector can also have a positive ripple effect on the Viksit Bharat (developed India) goal,” Chandran added.
India’s textile and apparel sector is the second-largest provider of jobs and livelihoods in the country. It is also a significant contributor to the country’s GDP and exports.
Some of the specific measures that the Confederation of Indian Textile Industry (CITI) would like to see in the coming Budget are:
1. Raw material and price stability-related:
- Removal of import duty on all varieties of cotton fibre.
- Change in MSP formula for cotton to align with international benchmark prices.
- Launch of a Cotton Price Stabilisation Fund.
- Ensure availability of man-made fibres (MMF) at globally competitive prices.
2. Competitiveness, technology, and sustainability-related:
- Launch of a Green Technology Scheme to support MSMEs’ transition to clean energy and sustainable practices.
- Launch of an alternative scheme to the erstwhile Technology Upgradation Fund Scheme.
- Launch of a scheme to promote indigenous textile machinery manufacturing.
- Address high power costs and industrial cross-subsidies.
- Establishment of a National Textile Fund.
3. Trade Facilitation-related
- Extension of RBI’s Trade Relief Measures to cover the entire textile value chain.
- Increase in Basic Customs Duty on all types of knitted fabric to curb imports at unviable prices.
- Reintroduction of the MEIS Scheme.
- Extension of the facility of Duty-free Import of specified items/goods to exporters of made-ups.
“Combined, these measures could increase the resilience of India’s textile and apparel sector and help it become a more powerful force globally, while also contributing towards realising the national target of creating a $350 billion textile and apparel industry in India by 2030,” Chandran said.
India’s textile and apparel sector has been hit hard by the 50 per cent US tariff on Indian goods, effective August 27, 2025. The steep US tariff has adversely affected numerous Indian textile and apparel companies, thereby increasing the risk that millions of people working in this sector may lose their jobs and livelihoods.
The US is the single-largest market for India’s textile and apparel exports, contributing almost 28 per cent to the total revenue of the country’s textile and apparel exporters. India’s exports of textile and apparel products to the US were valued at nearly $11 billion in the fiscal year 2024-25.
“India’s textile and apparel exporters have stepped up their diversification efforts, but it is tough to quickly make up for potential business losses in the US. Also, while existing and upcoming FTAs would create new opportunities for India’s textile and apparel sector, these benefits will require time to materialise,” Chandran said.
Fibre2Fashion News Desk (HU)
Asian stocks today: Markets trade mostly in red; Nikkei sheds 1%, HSI remains flat – The Times of India
World growth to ease to 2.6% in 2026, rise to 2.7% in 2027: World Bank
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